AVAX: Bulls struggle to drive gains
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- AVAX’s market structure was bullish, but the range formation remained intact.
- Buying pressure has been weak in recent days, showing bulls aren’t yet ready for a rally.
Avalanche [AVAX] registered decent gains in the middle of June. After a sharp move down, the bulls did well to drive a bounce toward $14. In doing so, they shifted the lower timeframe structure in favor of the bulls.
Read Avalanche’s [AVAX] Price Prediction 2023-24
Yet, over the past week, the upward momentum of AVAX has stalled. Bitcoin [BTC] climbed past $30.8k again on 3 July but does not possess a clear trend yet. It was an uncertain time for AVAX swing traders.
AVAX bulls find the going tough after reaching the $13.68 markAvalanche lacked a strong trend on the 4-hour chart over the past week. On 20 June, the price burst out past the local resistance at $11.9. Until 25 June, AVAX possessed a strong lower timeframe uptrend and reached $13.68.
Thereafter, the bulls faltered. The short-term trend lost strength and has become a range over the past week. The $12.15 and $13.68 levels of support and resistance, respectively, were the ones that need to be breached before the next move.
On the 4-hour chart, the DMI showed no strong trend in progress. The RSI was at 56, which showed weak bullish momentum, while the CMF stood at +0.19. This indicated heavy capital flow into the market- but AVAX struggled to break out of the aforementioned range.
Further north, there was a bearish order block from the 1-day chart at the $14 area. This zone also had confluence with the $13.88 level that represented March’s low. It was also a place where AVAX found support in late May before succumbing to the bears.
Spot CVD declines as bears assert themselves
How much are 1,10,100 AVAXs worth today?
The Open Interest crept upward in the past two days as Avalanche prices rose from $12.76 to $13.4. The OI rise measured close to $7 million worth of contracts, but the spot CVD had already slid.
This suggested that short-term speculators were bullish when AVAX prices bounced, but the selling pressure was intensifying at press time. If Bitcoin cannot hold on to the $30.6k-$30.8k area, it could spell trouble for the altcoin market.