Avalanche (AVAX) Bulls Regroup as Open Interest Spikes, Targeting $30

Avalanche (AVAX) has continued to display resilience, experiencing an impressive 5% surge over the past week.

Despite experiencing a market downturn on August 5, which led to the liquidation of over $1 billion in leveraged positions, AVAX has shown resilience, experiencing an impressive 5% surge over the past week.

Currently trading around $22, AVAX faced resistance at this level previously, but there are no nearby on-chain obstacles.

According to IntoTheBlock’s analysis, address activity highlights the importance of specific price ranges in terms ofホルダー positions.

A cluster of addresses at the $14.53 to $18.40 range are still in profit, indicating strong accumulation at these levels.

Another significant accumulation exists between $18.40 and $20.14, where many addresses are marginally in profit, suggesting that this range may act as a support level in the event of a price decline.

The next price range of $21.92 to $26.26 shows more addresses at a loss, indicating that it could serve as resistance as those holders may exit at breakeven.

However, higher price levels, such as $26.26 to $34.57, reveal even more addresses at a loss, indicating substantial accumulation during that period.

These levels could further resist upward movement, as holders look to minimize losses.

Prices above $34.57 see fewer addresses involved, indicating less trading activity at higher levels, which could lessen the resistance during a more extended rally.

An analyst at IntoTheBlock suggests that AVAX could climb to $30 if market sentiment remains positive, which is possible considering the chart, showing significant resistance clusters between $26.26 and $34.57.

However, if sentiment worsens, the potential for a drop to $16 also seems likely based on the support levels visualized in the chart.

Meanwhile, a rise in AVAX’s Open Interest suggests renewed confidence in the asset.

Following the release of the U.S. Bureau of Labor Statistics’ inflation data on August 14, Open Interest in AVAX jumped from $182 million to $201.6 million by August 15.

The 10.77% increase in Open Interest during a period of price consolidation suggests that a significant price move may be on the horizon.

Two key factors are driving this: growing trader confidence and the possibility of a short squeeze.

If bears fail to push AVAX below critical support levels, bulls may regain control and drive prices higher.

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