- AVAX price approaches key resistance at $24.9.
- Liquidation data indicates increased market activity.
The Avalanche [AVAX] token is currently hovering around the key price level of $23.5, and this has sparked talks of potential price reversals.
AVAX has declined by over 40% since the 22nd of July. Market participants are observing closely for patterns of waning bearish pressure.
The recent 4% price movement implies that bullish momentum may be forming, which may in turn rise as it approaches the critical resistance level at $24.9.
Source: Tradingview
The stochastic RSI indicates an oversold market, which further fuels a potential reversal to upside momentum.
Liquidation heatmap signals increased AVAX activity
According to liquidation heatmap data from Coinglass, market activity has increased. The data indicate a concentration of liquidations around the $23–$24 zone.
Market participants are observing this price level, anticipating potential breakouts or rejections.
Source: Coinglass
Long-term holder behavior hints at bullish sentiment
Interestingly, the long-term holder behavior for AVAX indicates a potential bullish run. The distribution of AVAX among whales, investors, and retail holders indicates a steady increase in investor holdings since mid-2022.
Source: IntoTheBlock
The IntoTheBlock data on the large number of transactions indicates a positive trajectory. Despite the fluctuations in the large transactions, there is an overall increase, suggesting an increased interest in the Avalanche token at current levels.
AVAX
Source: IntoTheBlock
Market participants are keenly observing for signs of a potential price reversal as AVAX approaches the key resistance level of $23.5.
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The recent 4% spike in price and the accumulating bullish momentum fuel this possibility. The long-term holder data and recent price actions signal a potential bullish run.
However, a rejection at the $23.5 level could lead to a short-term pullback.