Crypto:
29757
Bitcoin:
$67.132
% 0.32
BTC Dominance:
%54.3
% 0.12
Market Cap:
$2.43 T
% 0.29
Fear & Greed:
73 / 100
Bitcoin:
$ 67.132
BTC Dominance:
% 54.3
Market Cap:
$2.43 T

Avax Analysis After Stars Arena, Why is Avax Rising?

Avax

Avalanche ( AVAX ) is experiencing a significant rise, however it’s difficult to predict when this rise will end. However, we can examine the reasons for this rise and determine the points at which it could reach and possibly react by early analysis.

Reasons for the Rise

The reasons for this rise are based on both technical analysis factors and fundamental factors. In technical analysis, the breakthrough of the falling trend on September 26 which led to the start of a corrective movement attracted investors and opened up buying opportunities.

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Moreover, the popularity of the Avax-backed Stars Arena application could be a factor which increases Avax’s value. This application has begun to increase interest in Avax, and the fact that transactions are made with Avax has increased demand for Avax.

In the AVAX chart in the 4-hour timeframe, we have 4 order blocks. These order blocks may indicate key resistance points and potential reaction areas for AVAX.

If AVAX reacts from these regions, it could make a falling movement back towards the falling trend. However, it is very difficult to predict which band will return because it is not possible for us to know where the “Smart Money” will fill its position.

Smart Money – This term usually refers to capital controlled by institutional investors, market experts, central banks, funds or finance professionals whose main job is money management.

By paying attention to the changes in long-short ratios and liquidation rates, we can try to predict the points where a turnaround could occur.

When we look at the funding rate on the AVAX side, we see differences on this issue in different exchanges.

Even though the funding fee is mostly in a positive state, the fact that this fee is not at very high levels reduces the possibility of sharp movements on the chart. In this case, we can predict that the rise may last a bit longer.

If we look at a possible drop scenario on the AVAX side, we can examine the regions where we can react.

First of all, there is a resistance region at the level of $9.93 ahead. If this level is broken, we may see a move towards the level of $9.23. The level of $9.23 is an important support level and the loss of this level could take us to the order block level.

This level is also an important support point as a point that coincides with the resistance level of the falling trend. Therefore, the breaking of this level could lead to the continuation of the falling trend on AVAX side.


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