Altcoin
Avalanche price forecast (AVAX).
Yesterday’s surge in the price of Avalanche (AVAX) to just under $36 has reignited speculation about a potential $100 price rise. However, at the time of writing, the altcoin is trading at $33.80, down 6% in the last 24 hours.
Despite this increase yesterday AVAX it is still far from the previous high of $61.90 reached in March. However, several key indicators suggest the possibility of a continuation of the bullish momentum. One such indicator is the funding rate, which represents the cost of maintaining an open position in the derivatives market. Currently the negative Financing rate indicates that short positions are paying off long positions, suggesting bullish sentiment among traders.
While shorts are aggressive, the lack of premiums for their positions combined with rising prices indicates aggressive buying by spot buyers, potentially aiding AVAX’s bullish outlook. If this trend continues, the cryptocurrency could aim to surpass $40 in the near term.
The Money Flow Index (MFI) also increased, indicating an inflow of capital into Avalanche. Sustained MFI growth, combined with AVAX traders maintaining liquidity, could lead to further price appreciation.
Furthermore, support is seen at the $32.77 level, suggesting bullish sentiment among investors. This trend could see AVAX head towards the $60 resistance in the medium term, with the potential to push towards triple digits in the future, although likely within a few months rather than weeks.
Data on overt interest (OI) from currency are showing a slight increase, suggesting that traders are adding more positions to take advantage of price movements, further supporting the bullish sentiment around AVAX.
