Key Points to Remember
Avalanche (AVAX) has maintained its position above $21 as buying activity overtakes selling. The upward trend is still going strong, but surpassing $22.75 is crucial. Failure to protect the $20 level could send prices tumbling back to $17.
Since escaping a period of extended stability five days prior, Avalanche (AVAX) has been trading within a rising channel.
This upward movement resulted in an 18.23% increase, peaking at $21.53 before a slight retracement. Currently, AVAX is priced at $21.22, reflecting a 2.12% increase for the day, and its market capitalization has reached $8.94 billion.
What is driving Avalanche’s strength, even with the fluctuating market conditions?
Increasing Buy Orders – Spot Market Traders Are Active
Following a recent dip, buyers aggressively stepped in to defend the $21 mark, and this is clearly demonstrated in the spot market data.
According to Coinalyze data, Buy Volume reached 481K, slightly exceeding the Sell Volume of 430K. This resulted in a positive Buy-Sell Delta of 50K, indicating bullish momentum in the spot market.
This marks a recovery from July 12th, when Sell Volume soared to 1.53 million and Buy Volume decreased to 1.51 million, briefly giving control to sellers.
Source: Coinalyze
A similar pattern emerged when looking at the dynamics between buyers and sellers. MobChart data reveals Avalanche recorded 118.47K Buy Orders, surpassing the 99K Sell Orders, which created a positive Order Imbalance.
Source: MobChart
This shift in real-time trading sentiment has further fueled the current increase.
Futures Market Still Points to an Increase
The futures market shows a strong bullish sentiment among investors. According to Santiment data, Avalanche’s Funding Rates have remained consistently positive for the past five days, currently sitting at approximately 0.00616% at the time of this report.
Source: Santiment
Furthermore, Coinalyze’s Long/Short Ratio has risen to 3.883, with long positions accounting for a significant 79.18% of the market.
Source: Coinalyze
When long positions are dominant, it signals that most investors believe the price will continue to rise, which can also point to a market skewed too heavily in one direction.
Analyst Perspectives
According to Ali Martinez, AVAX must hold above the $20 level to maintain its bullish structure. A drop below this level could lead to increased selling pressure, while holding it could pave the way for higher price targets.
Source: X
If buyers keep the price above this level, the upward trend should persist, as sellers will lack the encouragement to re-enter the market.
AVAX Momentum Indicators Show…
Based on AMBCrypto’s analysis, AVAX has demonstrated strength as buyers have aggressively defended the upward movement.
Consequently, the Stochastic RSI for the altcoin remains high at around 99.63, suggesting overbought conditions. Similarly, Avalanche’s +DI (Directional Indicator) within the DMI (Directional Movement Index) is around 30, further confirming strong upward momentum.
Source: TradingView
If AVAX maintains its momentum and successfully turns $22.75 into a support level, the next potential target could be $24.40.
However, falling below $20.01 could pull the price back down to $17, particularly if sellers regain control and spot market support diminishes.