Analysis
Can AVAX defend the $10 psychological level?
AVAX’s pullback hit a key bullish zone that could derail sellers’ efforts.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- AVAX’s sellers pushed the altcoin to a key bullish zone.
- Demand in the Futures market dipped slightly.
Aggressive Avalanche [AVAX] sellers grabbed +15% shorting gains after dragging the altcoin from a recent high of $11.88 to a press time value of <$10. But the pullback has hit key bullish zones.
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AMBCrypto’s recent AVAX price
analysis projected that the earlier bullish momentum could tip AVAX to $11. The projection was validated, but sellers entered the market after AVAX hit a key roadblock.Will $10 stop the plunge?
Source: AVAX/USDT on TradingView
AVAX’s recovery faced price rejection at a price imbalance area of $11.88 – $12.15 (white). A daily bearish order block (OB) of $12.15 – $12.46 (red) exists above the price imbalance sellers exploited for recent market re-entry.
But the pullback has hit a key bullish level and a previously invalidated daily bullish OB of $9.89 – $10.13 (cyan). Below the bullish OB, another price imbalance/liquidity area of $9.49 – $9.81 (white).
So, the AVAX’s drop could ease at the above two levels if BTC doesn’t post excessive losses in the next few days. As such, $9.5 and $10 could be key buying interest levels, with immediate bullish targets at $10.54 and $11.02.
Conversely, an extended plunge below $9.49 (price imbalance) will weaken AVAX’s more. In such an extremely bearish scenario, the next supports are $9.3 and $9.0.
Meanwhile, the RSI retreated toward the 50-median level at press time, denoting sell pressure heightened in the past few days. An RSI rebound at the 50-mark will confirm a potential price reversal at $9.5 or $10.
However, the demand for AVAX declined, too, as shown by the OBV’s downtick.
Demand for AVAX in the derivatives segment improved
Source: Coinglass
According to Coinglass, the AVAX’s Open Interest (OI) rates were muted in September but improved in early October. The metric surged to >$130 million by 7 October, but retreated afterward.
How much are 1,10,100 AVAXs worth today?
It shows demand for AVAX in the Futures market improved but dropped in the past two days.
A dip in volume and liquidation of more long positions in the past 24 hours before press time further cemented the above bearish sentiment in the Futures market.
