AVAX has this silver lining to look forward to despite massive losses
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
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- Daily market structure flipped bearish after heavy losses over the past 3 days
- Volume indicator showed bulls had a chance at a rally if BTC cooperates
Bitcoin Dominance stood at 47.17% at press time, with the same rising since 18 April. This is a sign that the altcoin market has taken a greater beating than Bitcoin during the sell-offs. Avalanche was one of the tokens that saw far larger losses than BTC.
Realistic or not, here’s AVAX’s market cap in BTC’s terms
Avalanche slid by 22.45% in the span of three days, while Bitcoin depreciated by just 11%. The market structure and volume profile of AVAX suggested further losses were likely. And yet, there was one indicator that disagreed.
Rejection from the daily bearish order block saw AVAX fall under stout supportThe Visible Range Volume Profile showed that the Value Area High and Value Area Low sat at $29 and $15.13, respectively. The Point of Control (red) was at $17.34, and AVAX was trading at $17.02 at the time of writing.
The fact that the bulls were unable to defend the POC was of some concern. A daily session close under it was discouraging and showed that further losses were possible. The market structure was also bearish after the previous uptrend’s higher low was beaten during the move down. The RSI also highlighted bearish momentum after it slipped beneath the neutral 50-mark.
However, the OBV remained in an uptrend. The recent losses made only a small dent on the progress of the OBV in recent months, which showed that buyers had the upper hand on the higher timeframes.
How much are 1, 10, or 100 AVAX worth today
To the south, a bullish order block was identified at the $14-zone, with a support level at $16.14 as well. AVAX bulls could reverse the downward trajectory at these levels.
Funding rate slipped into bearish territory and speculators straddle the fencesFinally, Coinglass’s data showed that funding rate was bullish till 19 April, but began to fall over the past few days.
Binance and Gate.io underlined negative funding over the past few hours, which highlighted a shift in sentiment.Coinalyze data also pointed to bearish sentiment. Both the Open Interest and AVAX prices were in decline. This was a sign of bearish momentum for the price and seemed to discourage bulls in the Futures market.
In fact, they are not yet actively shorting the token, which could accelerate losses.