- Avalanche (AVAX) has started the week on a strong bullish trend, posting a 12% rally in the last 24 hours.
- AVAX is now testing $21.90, its recent high, and a move above $22 can unlock even more upside potential.
Avalanche (AVAX) has started the week on a strong, bullish trend. The token reached nearly $22 on Monday after posting a 12% rally in the last 24 hours. With the price now hovering around $21.90, the token stands in a massive gain of 18% in the weekly frame. All this shows clear signs that buyers remain in control.
Last week, AVAX broke through the downtrend that started in December from the peaks of the month. That was not just to break the trend line, but it was also proved by the strong support it offered. After that breakout, the token saw a massive surge of 19%.
Interestingly, the funding rate flipped into positive territory, now at 0.0093%. That small number carries enormous importance. It’s a sign traders are going long—betting the price will continue to rise. It’s a flip from past trends when shorts dominated. The last time the market saw a reversal, these intense, double-digit gains were not far off.
Positive Signals Build as AVAX Maintains Momentum
AVAX is now testing $21.90, its recent high, and a move above $22 can unlock even more upside potential. Support is also forming around $21.50, giving some space to breathe in case of pullbacks. On the hourly charts, the candles are green with higher highs and a steady rhythm of buying.
Traders also observed a short squeeze effect recently. According to Coinglass, the Long/Short ratio shows that long sentiments are overcoming the short bets. 51.86% of traders hold long positions while 48.14% of traders hold short positions. That helped lead to the swift rally observed over recent sessions.
The same bullishness is also being reflected in technical indicators. The daily Relative Strength Index (RSI) has moved up to 84, a huge overbought condition. The MACD also bullishly crossed last week, issuing a buy signal that has since followed the rally. Both are signs momentum is shifting in favor of more gains.
20% Rally in Sight? Funding Rates Fuel the Fire
One big reason behind the confidence in AVAX’s current trend is the shift in sentiment from derivatives markets. Coinglass’s OI-Weighted Funding Rate—basically a look at how much longs are paying shorts—jumped from -0.0065% last Friday to 0.0051% by Monday. That shift into positive territory highlights how traders are now betting on the upside, not the downside.
Fewer are wagering on AVAX falling, and more are taking positions that depend on it climbing further. This optimism is echoed in the long-to-short ratio, which hit its highest level in over a month, reinforcing the idea that traders see more room to run.
As long as volume stays strong, funding remains positive, and liquidations don’t pile up on the long side, AVAX may be gearing up for another leg higher. A 20% rally from current levels could push prices past $25, and if the current structure holds, that scenario is not out of reach.
