Analysis

AVAX: Bulls struggle to drive gains

Avalanche bulls struggled to push past the $13.7 area over the past eight days, but now the bears seem to have begun taking control.

Published

1 year ago

on

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 mark

Source: AVAX/USDT on TradingView

Avalanche 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

Source: Coinalyze

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.

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