Avalanche (AVAX) Bulls Refuse to Surrender Despite Telling Signs from the Market, Will the Bears Ever Win?

Altcoins including Avalanche [AVAX] have been able to hold on to the recent upswing after prices crashed a few days ago. However, AMBCrypto found that traders

Despite a recent uptick in altcoin prices, data shows that traders are betting on a price decrease for Avalanche (AVAX) after its recent surge.

According to a recent analysis by Ambcrypto, the AVAX Long/Short Ratio stood at 0.88, indicating a bearish sentiment among traders in the derivatives market.

The Long/Short Ratio gauges traders’ expectations regarding price direction. To calculate this ratio, the number of long positions is divided by the number of short positions.

Traders who anticipate a price increase and aim to profit from it are considered longs, while those who bet on a decrease are shorts.

When the Long/Short Ratio exceeds 1, the majority of traders expect the price to rise. Conversely, a ratio below 1 indicates an expectation of a price decrease, which aligns with the observation for the token.

At the time of writing, AVAX was trading at $27.44, showcasing a 9.09% surge in the past 24 hours. Prior to this uptick, the price had dropped as low as $22.25.

Hence, the above data suggests that traders expect the value to trend back toward this range.

However, based on the Cumulative Volume Delta (CVD), this may not be the case. The CVD displays the volume of a cryptocurrency for buying and selling orders in the market.

A positive CVD indicates a higher buying volume than selling volume in the spot market, while a negative value signifies aggressive selling.

According to Ambcrypto’s analysis, AVAX’s CVD on the daily chart was positive, indicating an uptick in buying pressure.

If sustained, this could propel AVAX price toward $30, potentially leaving traders who choose to short the cryptocurrency empty-handed.

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