The post AVAX traders bet on price drop despite positive market indicators – Why? appeared on BitcoinEthereumNews.com.

Activity in the spot market did not align with the bearish expectations in the derivatives market.  Open Interest increased and might back a continuation of the the price increase.  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 in the market decided to place bets in the other direction. At press time, AVAX’s Long/Short Ratio was 0.88, serving as proof of the sentiment. The Long/Short Ratio acts as a barometer of investor expectations. To arrive at the result, one has to divide the number of long positions by the number of shorts. No trust in the uptrend For context, longs are traders predicting a price increase while hoping to profit from it. Shorts, on the other hand, are traders betting on a decrease. When the Long/Short Ratio is above 1, it means that the average market participants expects the price to increase. However, if the ratio is below the threshold, it means the broader expectation is a price decrease, which was the situation with the token. Source: Coinglass As of this writing, AVAX changed hands at $27.44. This was a 9.09% increase in the last 24 hours. Before that, the price had dropped to $22.25. Therefore, the data above suggests that traders expect the value to trend toward this area again. However, this might not happen, according to data from the Cumulative Volume Delta (CVD). The CVD displays the volume of a cryptocurrency based on  the buying and selling orders in the market. AVAX wants $30 back If the CVD is positive, it means that buying volume in the spot market is higher than the sell volume.However, if the value is negative, it means that there is aggressive selling in the market. According…

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Filed under: News - @ July 7, 2024 9:18 pm