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- AVAX has been trading within a range for the past six weeks
- Momentum and volume were in favor of sellers at press time
Avalanche [AVAX]At the time of writing, it appears to be in a consolidation phase, with AMBCrypto’s previous report highlighting its lack of momentum and decline. Social media sharing also. Because of this, the altcoin was trading around the $36 support level.
In fact, technical indicators have not indicated that an AVAX rally could be imminent. A move south towards $30 looked more likely, given the selling pressure of the past six weeks.
Band formation is still in play
Source: AVAX/USDT on TradingView
Since mid-April, AVAX has traded within a range extending from $39.9 to $36.1. The dotted white line at $35.9 represents the medium term level and is an important level in the short term. The bulls were on the verge of giving up on the bears at the time of publication.
The Relative Strength Index on the daily chart has also declined steadily over the past ten days. It fell below the neutral 50 level to serve as an early warning that momentum has turned bearish. Meanwhile, the OBV has been in a strong downtrend since mid-April as well.
This decline highlighted ongoing selling pressure. Although the trend has slowed over the past two weeks, it still indicates bearish dominance and lack of buying pressure. Until this factor changes, downward pressure on AVAX is likely to continue.
Meditative detachment contributes to AVAX problems
source: Currency analysis
Since May 23, open interest has hovered around $200 million. Meanwhile, the price slowly dropped from $38 to $36. Futures traders did not appear eager to bid for a retest of the mid-range level – suggesting further losses are likely.
is reading Avalanches [AVAX] Price prediction 2024-25
However, it is worth noting that the funding rate has remained positive, with traders not selling assets en masse yet. Conversely, the CVD spot price, like OBV, has been in a steady downtrend. Simply put, an AVAX rebound will be unlikely in the short term given the selling pressure.
Disclaimer: The information provided does not constitute financial, investment, trading or any other type of advice and represents the opinion of the writer only.
