Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- $12 has been a roadblock for the past few days.
- Buying volumes and open interest rates surged.
Avalanche’s [AVAX] bulls got a vital boost after clearing a key hurdle at $12. The roadblock was key in late December 2022/early January 2023 and held back bulls in the past few days. But, AVAX took a cue from Bitcoin’s [BTC] retest of $29k and smashed the obstacle.
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BTC’s move was surprising given the US SEC’s ongoing lawsuit against Binance and Coinbase. Nevertheless, the upswing offered altcoins, AVAX included, a new breath of life to reverse recent losses.
What’s ahead for AVAX?
Source: AVAX/USDT on TradingView
Despite smashing the $12 roadblock, AVAX isn’t entirely out of the woods yet. The RSI (Relative Strength Index), which tracks buying vs selling pressure, has been below the 50-mark since April. It indicates selling pressure prevailed in the same period.
Similarly, the OBV (On Balance Volume) dipped but recovered at the time of writing – Demand for AVAX improved. With the RSI edging closer to the 50-mark, bulls could encounter resistance.
Aside from indicators, the price action must clear another trendline resistance, near $13.0, to move higher.
So, a price rejection at $13.0 could see AVAX inflict a pullback to $12.03 or $11.2. An extreme correction could ease at the $10 psychological level.
Conversely, further bullish intent could be confirmed if AVAX crosses $13 and the trendline resistance (cyan). In such a scenario, the $13.88 resistance will be the immediate target for bulls before attempting to retest $15.
Buying volumes and OI improved
Source: Coinalyze
According to Coinalyze’s 1-hour chart, AVAX recorded a surge in CVD (Cumulative Volume Delta) from 20 June. This happened after a recent steady drop in the indicator in the past few days, denoting buying volumes and sentiment improved on 20 June after BTC’s upswing.
How much are 1,10,100 AVAXs worth today?
Similarly, the open interest (OI) rates increased in the same period and hit $60 million. Although this denotes a bullish sentiment, both metrics eased at the time of writing, which could suggest a pivot was imminent. Hence, the trendline resistance is a key level for bulls to crack or falter.
