Altcoin
How long until AVAX can reach $100? Decoding the rise of the altcoin
- Derivatives market data showed that short positions were dominated.
- A golden cross on the daily chart suggests a rise to $60 in the near term.
That of avalanches [AVAX] The price increase to $35.77 once again sparked speculation that the token could reach $100. This recent increase was a 24-hour jump of 4.30%.
However, it was still not close to the $61.90 ceiling the cryptocurrency reached in March.
Despite this, some key indicators suggest that the token may continue its upward run. First, AMBCrypto considered the funding rate.
The funding rate is the cost of holding an open position in the derivatives market. A positive reading of the funding rate implies that longs are paying shorts to keep their positions open.
Traders lose, AVAX gains
In this case, most bets lean towards the bullish side. However, negative funding suggests that most traders have placed bearish forecasts with short films paying for long films.
For context, a long is a trader who expects the price of an asset to rise. On the other hand, a short position is one that expects the price to decline and hopes to profit from it.
At the time of this writing, the aggregate funding rate on exchanges was -0.001%. THE negative financing while AVAX price increases imply that shorts are aggressive.
Source: Santimento
However, they are not compensated for their positions. Furthermore, the price increase suggests that spot buyers are aggressive, and this could be bullish for AVAX.
If the parameter were to remain this way, the price of the cryptocurrency could attempt to exceed $40 short term. From the daily chart, the Money Flow Index (MFI) reading has increased.
The MFI shows whether capital is flowing into a cryptocurrency or not. If the MFI supports the rise and traders do not withdraw their liquidity from AVAX, the price may continue to rise.
The $100 is coming, but not now
AMBCrypto also noticed support at $32.77, indicating that the bulls have formed a support and were defending it. From a broader perspective, the 50 EMA (blue) has crossed above the 200 EMA (yellow).
This crossover is called a golden cross, suggesting that the medium to long-term outlook for AVAX was bullish. With this trend, the token price could impact the $60 resistance in the medium term.
Source: TradingView
Furthermore, AVAX bulls may try to push the price towards the triple-digit level. But this may become plausible only in a few months, not in a few weeks.
In terms of Open Interest (OI), Coinglass data showed that there was a slight increase. This increase implies that traders have started adding more positions to gain from the price action.
Source: Coinglass
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If OI continues to rise alongside the price action, AVAX price could reach a weekly high before the end of this weekend.
Therefore, the $100 prediction remains an option for the token. But that could happen later this year or the next.