When might AVAX hit $100? Analyzing the altcoin’s ascent
The recent rise in AVAX’s price could signify the beginning of a significant trend. However, achieving $100 in a linear fashion may require some time.
- Data from the derivatives market indicated a prevalence of short positions.
- A golden cross observed on the daily chart indicated a potential uptrend towards $60 in the near future.
The recent increase in Avalanche’s (AVAX) price to $35.77 has reignited speculation about the token reaching $100. This rise represents a 4.30% increase over the past 24 hours. However, it still falls short of the $61.90 peak that the cryptocurrency hit in March.
Nevertheless, certain key indicators indicate that the token could sustain its upward momentum. Firstly, AMBCrypto examined the Funding Rate. The Funding Rate reflects the cost associated with holding an open position in the derivatives market. A positive Funding Rate suggests that long positions are paying shorts to maintain their positions open.
Traders to lose, AVAX to gain
In this scenario, most bets lean towards bullish sentiments. However, the negative funding rate indicates that the majority of traders have taken bearish positions, with shorts outweighing longs.
For context, a long position reflects a trader’s expectation of an asset’s price rising, whereas a short position indicates a prediction of a price decrease with hopes of profiting from it.
Currently, the aggregated Funding Rate on exchanges stands at -0.001%. Despite AVAX’s price increase, the negative funding rate suggests aggressive short positions, which are not being rewarded. Conversely, the rising price indicates aggressive buying from spot buyers, potentially signaling a bullish trend for AVAX.
If this trend persists, the cryptocurrency’s price might aim to surpass $40 in the short term. Additionally, the Money Flow Index (MFI) reading on the daily chart has increased. The MFI assesses whether capital is flowing into or out of a cryptocurrency. If the MFI continues to rise and traders refrain from withdrawing liquidity from AVAX, the price may continue its upward trajectory.
$100 is coming but not now
We’ve observed support at $32.77, indicating bullish support forming and defending this level. Looking at the broader picture, the 50 EMA (blue) has crossed above the 200 EMA (yellow), a phenomenon known as a golden cross, signaling a bullish mid to long-term outlook for AVAX. With this trend, the token’s price may aim for the $60 resistance level in the mid-term.
Moreover, there’s potential for AVAX bulls to push the price towards triple-digit levels, although this scenario might take several months rather than a few weeks. In terms of Open Interest (OI), Coinglass data suggests a slight increase, indicating traders are increasingly taking positions to capitalize on price movements.
If OI continues to rise alongside price action, AVAX’s price could reach a weekly high before the weekend concludes. Therefore, the $100 prediction remains a possibility for the token, albeit likely later this year or next.