- AVAX’s Open Interest (OI) surged by 6.50%, hinting at the buildup of new positions
- On-chain metrics revealed that exchanges have seen outflows of AVAX worth $3.54 million
AVAX, the native token of Avalanche, appears to be making a U-turn after a notable price decline in recent days. Like other major cryptocurrencies, AVAX is gaining attention from traders and investors due to its bullish pattern on the four-hour chart.
AVAX price momentum
At the time of writing, the altcoin was trading near $34.60, having surged by over 3.05% in the last 24 hours. However, over the same period, participation appears to have dropped by 15% – A sign that traders and investors may be waiting for confirmation or a complete shift in sentiment.
Traders’ and investors’ rising interest
Despite declining participation, traders have shown strong interest in the asset, as reported by the on-chain analytics firm Coinglass. In fact, data revealed that AVAX’s Open Interest (OI) climbed by 6.50% in the last 24 hours. The uptick in OI hinted at the formation or buildup of new positions on both long and short sides.
However, interest in altcoins cannot be limited to intraday traders. According to Coinglass, investors and long-term holders have begun accumulating tokens too.
The on-chain metric for spot inflow/outflow found that exchanges have seen outflows of AVAX worth $3.54 million in the last 24 hours. This can be seen as a sign of potential accumulation, which could drive buying pressure and further upside rallies.
Source: Coinglass
AVAX technical analysis and price action
All this bullish activity in AVAX has been driven by its strong price action.
According to AMBCrypto’s technical analysis, AVAX formed a bullish inverted head and shoulders pattern on the four-hour time frame. It seemed poised for a breakout, at press time.
Source: TradingView
AVAX price prediction
In trading and investing, experts consider this pattern a bullish signal, with the price normally surging only after a successful breakout.
Based on the altcoin’s historical price momentum, if AVAX breaches the pattern and closes a four-hour candle above the $35-level, there is a strong possibility it could initially rise by 8.50% to hit $38. If sentiment remains unchanged, it could further soar by 25% to touch $41.50 in the future.
Despite the bullish outlook, however, AVAX was still trading below the 200 Exponential Moving Average (EMA) on the four-hour time frame, at press time. This indicated that it has remained on a downtrend. However, its Relative Strength Index (RSI) of 53 suggested that maybe, it has the potential to continue its rally in the coming days.
