What to expect as Avalanche retests June lows
AVAX's recovery could be delayed after hitting a potential hurdle amidst a weak BTC.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- AVAX retested June lows and rebounded at the time of writing.
- Buyers gained little ground, but Open Interest rates were muted.
Sellers consolidated more ground as Bitcoin [BTC] recorded more losses over the last few days. In particular, Avalanche [AVAX] sellers gained over 18% between 15-17 August. It pushed the altcoin to retest June lows ($10).
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Over the last month, BTC struggled to stay above $30k and consolidated between $29k – $30k. As sellers steadily gained control, further losses were imminent. The recent excessive dip below $27k was unexpected but further cemented bears’ leverage.
Can AVAX flip $11 to support?
The extended pullback on 17 August eased at the June low ($10). It shows all June/July gains were reversed. But bulls attempted to regain control at the time of writing. Unfortunately, the recovery hit the previous support of $11.
The Relative Strength Index (RSI) retreated to the oversold zone and showed signs of reversal, which could point to an extra price pivot to the upside. But the Chaikin Money Flow (CMF) remained below zero, signaling muted capital inflows.
Besides, with a weak BTC below $27k, flipping $11 to support could be more challenging. So, AVAX could consolidate losses below $10 or dip to $9.33 if BTC’s weakening extends.
Conversely, a foray above $11 could tip bulls to focus on the next target at $12 if the current sentiment improves.
Buyers gained little control
Read Avalanche’s [AVAX] Price Prediction 2023-24
On Coinalyze’s 1-hour chart, the CVD (Cumulative Volume Delta) dipped further but showed a steady rebound at the time of writing. It indicates buyers gained little market control in the past few hours before press time.
However, the Open Interest rates remained muted below $60 million at the time of writing. Compared to >$70 million worth of Open Interest on 15 August, the press time levels meant little demand for AVAX in the derivatives market. So, it could delay AVAX from crossing $11.
