Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Cryptocurrencies

Avalanche Price Forecast: AVAX bulls aim for double-digit rally amid increase in bullish bets

Source Fxstreet

Avalanche price extends its gains on Monday after rallying nearly 9% in the previous week.
On-chain metrics suggest a bullish picture as AVAX’s long-to-short ratio reached its highest in over a month.
The technical outlook and funding rates data suggest a rally continuation, targeting an additional 20% gain.

Avalanche (AVAX) price extends its gains by 7%, trading above $21 on Monday after rallying almost 9% the previous week. On-chain metrics suggest a bullish outlook as AVAX’s long-to-short ratio reached its highest in over a month. The technical analysis and funding rates data suggest a rally continuation, targeting 20% additional gains.

Avalanche shows bullish bias as it closes above its descending trendline

Avalanche price broke and found support around its descending trendline (drawn by connecting multiple high levels from mid-December) last week and rallied nearly 7%. At the start of this week, on Monday, it is continuing to trade above $21.39, scoring 7% in gains.

If AVAX continues the upward trend and closes above its weekly resistance at $20.99, it could extend the rally by 17% to retest its next key level at $24.99. A successful close above this level would extend additional gains by 20% to retest its key psychological level of $30.

The Relative Strength Index (RSI) on the daily chart reads 53, pointing upward above its neutral level of 50, indicating bullish momentum. The Moving Average Convergence Divergence (MACD) indicator on the daily chart also showed a bullish crossover last week, giving buy signals and indicating an upward trend.

AVAX/USDT daily chart

Another bullish sign is Coinglass’ AVAX long-to-short ratio, which reads 1.18, the highest level in over a month. This ratio above one reflects bullish sentiment in the markets as more traders are betting for the asset price to rise.

AVAX long-to-short ratio chart. Source: Coinglass

According to Coinglass’s OI-Weighted Funding Rate data, the number of traders betting that the price of Avalanche will slide further is fewer than those anticipating a price increase.

This index is based on the yields of futures contracts, which are weighted by their open interest rates. Generally, a positive rate (longs pay shorts) indicates bullish sentiment, while negative numbers (shorts pay longs) indicate bearishness.

In the case of AVAX, the metric increased from -0.0065% on Friday to 0.0051% on Monday, reflecting a positive rate and indicating that longs are paying shorts. This scenario often signifies bullish sentiment in the market, suggesting potential upward pressure on Avalanche’s price.

AVAX OI-Weighted Funding Rate chart. Source: Coinglass

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Big Tech's $800 billion AI bill faces its first real test — free cash flow is the judge Alphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.

Author Irene Q.

Oct 26, Mon

Alphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.

Anthropic files for a $2 trillion IPO — the $80.7 billion loss is the decoy, the $450 billion compute bill is the risk Anthropic publicly filed its S-1 on October 26, revealing $16.29 billion of first-half revenue (+1,304% year over year) and a $80.7 billion net loss — of which $72.4 billion is a non-cash convertible-note charge. The real number is the $450 billion of signed, mostly non-cancelable compute commitments. Here is what the filing says, why NVDA, ARM and MU are the tradeable read-through, and the conditions that decide whether the AI trade passes its first public valuation test.

Author Irene Q.

Oct 27, Tue

Anthropic publicly filed its S-1 on October 26, revealing $16.29 billion of first-half revenue (+1,304% year over year) and a $80.7 billion net loss — of which $72.4 billion is a non-cash convertible-note charge. The real number is the $450 billion of signed, mostly non-cancelable compute commitments. Here is what the filing says, why NVDA, ARM and MU are the tradeable read-through, and the conditions that decide whether the AI trade passes its first public valuation test.

Fed October Rate Decision Preview: Rate Hike Pause Has Become Consensus, How Will US Stocks, Dollar, and Gold React?The Federal Reserve will announce its October interest rate decision at 14:00 Eastern Time on October 28, and Fed Chair Warsh will hold a press conference at 14:30. Markets currently wide

Author TradingKey

Oct 27, Tue

The Federal Reserve will announce its October interest rate decision at 14:00 Eastern Time on October 28, and Fed Chair Warsh will hold a press conference at 14:30. Markets currently wide

Bitcoin is back above $80,000 — but 75% of the bounce was shorts, not buyers Bitcoin trades at $80,669, back above the $80,000 line after touching $79,145 on October 24. But 75.4% of the last 24 hours of futures liquidations were shorts, CME open interest fell 36,545 BTC in October, and spot ETFs lost $773.5 million on October 22-23. Price is up; positioning is down. Here is why the bounce is a squeeze, and the four things that would make it real.

Author Suzie

Yesterday 05: 54

Bitcoin trades at $80,669, back above the $80,000 line after touching $79,145 on October 24. But 75.4% of the last 24 hours of futures liquidations were shorts, CME open interest fell 36,545 BTC in October, and spot ETFs lost $773.5 million on October 22-23. Price is up; positioning is down. Here is why the bounce is a squeeze, and the four things that would make it real.

Brent's $115 front month sits $4.6 above January — the $14 spread to WTI is the supply-risk premium December Brent trades at $115.29 while January is $110.71, a $4.58 backwardation. The December Brent-WTI spread is $14.2, versus a $3-5 normal. That gap, not the headline, is where the Middle East supply risk is priced. Here is what the curve says, why the December contract's expiry on October 30 will mechanically cut the headline by $4.6, and the 108.81 neckline that decides the next move.

Author Irene Q.

Yesterday 06: 21

December Brent trades at $115.29 while January is $110.71, a $4.58 backwardation. The December Brent-WTI spread is $14.2, versus a $3-5 normal. That gap, not the headline, is where the Middle East supply risk is priced. Here is what the curve says, why the December contract's expiry on October 30 will mechanically cut the headline by $4.6, and the 108.81 neckline that decides the next move.

Popular Symbols