Connect with us
Active Currencies 14513
Market Cap $2,715,184,666,611.38
Bitcoin Share 49.67%
24h Market Cap Change $0.03

AVAX faces these roadblocks ahead of Fed’s decision

2min Read

AVAX attempted a recovery but faced key obstacles ahead. What’s next for the token ahead of the Fed announcement?

Share this article

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • Near-term bulls face two critical hurdles 
  • Open interest, negative funding rates declined

The May CPI report indicates that US inflation continues to cool. It remains to be seen if the Fed will be influenced to pause rate hikes based on the data and other variables. 


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


But the crypto market posted mixed results after CPI data. In particular, Avalanche [AVAX] attempted a recovery but hit a key resistance level in December 2022/early January 2023. Besides, more roadblocks ahead could delay a sharp upside move for the altcoin. 

Can bulls bypass the roadblocks?

Source: AVAX/USDT on TradingView

The RSI and CMF have improved steadily in the past few days. It shows increased buying pressure and capital inflows for AVAX. But the RSI headed into the median level and could face little resistance before moving forward. 

Besides, there are two FVG (fair value gap) zones of $11.7 – $13 (white) and $13.2 – $13.7 (red). The latter sits close to the previous range low of $13.7, while the former aligns with the late December/early January resistance level ($12.1). 

It means the stretch above the current price level up to the range low is a resistance area. A negative price reaction from the above bearish zone could drag AVAX lower to $11.2 or $10. 

However, a bullish BTC, especially above $26.6k, could tip AVAX to cruise across the above bearish zone. A session close above the range low could offer bulls more edge to target higher resistance levels at $14.5 and $15. 

OI and funding rates were negative

Source: Coinglass

Bulls could still have a hard task given the decline in OI (open interest) rates from >$60 million to below $40 million on the Binance exchange. It denotes a bearish stance on the futures market. 


How much are 1,10,100 AVAXs worth today


The above negative sentiment is further supported by the negative funding rates recorded from 10 June. Although the negative funding rates eased considerably in the past three days, most exchanges were yet to record a positive rate for AVAX. 

Source: Coinglass

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.