- The price of AVAX once again reached a key level around $31 on the charts
- Statistics pointed to potential bullish momentum if key support holds
Avalanche (AVAX) is back in the spotlight today after recent data and technical analysis pointed to a potential bullish trend. AVAX has shown resilience lately, coming off its key support level at $31. At the time of writing, the altcoin had risen to $32.37, up 3.78% in 24 hours.
Here it is worth noting that this price action came after a few days of sideways trading and consolidation. The consolidation phase suggested that the previous selling pressure has been absorbed by the market and it could be time for a northward breakout.
In fact, the above-mentioned increase indicated that market participants are gaining confidence with possible higher price targets.
Source: TradingView
Statistics support the bullish case
AMBCrypto’s analysis of AVAX’s on-chain metrics revealed more positive insights into the altcoin’s recent moves. According to IntoTheBlock, about 58% of AVAX holders had profits at press time. This significant share indicated strong investor sentiment at the prevailing price level.
This level of profitability implied that the asset is on solid footing and may have room for further upside potential.
Source: IntoTheBlock
Additionally, AVAX recorded high social volumes, as evidenced by Santiment’s social data. Figures for this showed a progressive increase in the altcoin’s social volume since the start of the month.
Such an increase in social mentions contributed to the positive sentiments around AVAX’s market.
Source: Santiment
According to Coinglass liquidation data, AVAX appeared to have a bullish bias, with clusters of liquidation pools above the retested support level.
These areas serve as critical thresholds and can lead to buy-side liquidations and fuel an uptrend.
Source: Coinglass
What next for AVAX?
Finally, AVAX’s market status and numbers indicated a potentially bullish outlook.
As long as the $31 support holds and social sentiment remains positive, Avalanche could continue its upward momentum on the charts.
