AVAX: Bulls make a last stand at critical support level

Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.

• The market construction of Avalanche over the previous month confirmed robust bearishness.
• The quantity indicators confirmed shopping for stress may not be sufficient to stem the losses.

Avalanche [AVAX] has confronted constant losses on the worth charts in current weeks. The on-chain metrics confirmed that network activity was in decline. Nonetheless, the deliberate token unlock is one thing that buyers can be careful for.

Learn Avalanche’s [AVAX] Price Prediction 2023-24

For the reason that market is aware of of this occasion, its impression on the worth may not be notable or instant. Previously, this occasion has been accompanied by a downtrend in costs. If this had been to repeat, AVAX may lose the psychological $10 stage.

Fibonacci retracement and extension ranges highlighted areas of curiosity on the chart

Supply: AVAX/USDT on TradingView

On the 2-hour chart, AVAX shaped a collection of decrease highs and decrease lows prior to now week to indicate a downtrend. The Fibonacci ranges (yellow) confirmed that the worth was close to the native low at $9.99 as soon as extra. It may bounce as excessive as $11.93 earlier than one other drop, though the proof for such a bounce was not current.

Therefore the probably path was a retest of the $10.5 resistance earlier than a transfer to $9.41, the 23.6% extension stage. The $10.15 and $10 ranges highlighted in orange had been extraordinarily necessary. They represented low of 2023 to this point, and a requirement zone in June and July 2021. $10.5 was additionally important, and AVAX bulls haven’t put up a powerful combat at these ranges.

The RSI on the H2 chart outlined robust bearish momentum. The OBV continued to slip decrease and the CMF confirmed sizeable capital outflow from the Avalanche market with a studying of -0.19. Subsequently, a transfer beneath $10 and a subsequent retest may supply a shorting alternative.

Coinalyze information pointed towards some bidding for AVAX prior to now 24 hours

Supply: Coinalyze

Whereas the worth has been in decline, it noticed a tiny bounce from $10.27 to $10.4 on 21 August. It was accompanied by a progress within the Open Curiosity that amounted to $2 million price of contracts.

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It was unclear if this got here from bears constructing quick positions beneath the $10.5 stage or from early bulls.

The spot CVD confirmed clear promoting stress prior to now few days. Alongside the OBV it was on a downtrend. The proof at hand confirmed additional losses had been probably for AVAX, however a bounce to $11 can’t be discounted.