Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion.
- AVAX recovered barely above a key short-term downtrend line.
- The sentiment was optimistic, however AVAX confronted a worth rejection at press time.
Avalanche’s [AVAX] restoration could possibly be restricted regardless of improved traders’ confidence. The asset lately dropped from a excessive of $22.8 to a low of $19.4, a 14% plunge. The drop occurred after Bitcoin [BTC] briefly misplaced the $23k zone.
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Bulls launched a powerful restoration try, however their efforts appeared unsustainable, as advised by technical indicators.
AVAX confronted worth rejection at $21.04
Bulls inflicted a bullish breaker after discovering regular assist at $19.50. The momentum noticed AVAX break the resistance at $19.81 and a convincing cross above the downtrend line, which flipped the short-term market construction to bullish.
Nonetheless, the value rejection at $21.04 set the bulls again. AVAX may decide on the seven-period EMA of $20.52 or $20.40 assist ranges earlier than returning to retest the 21.04 degree.
Nonetheless, if BTC misplaced the $23k zone, AVAX bears may devalue the asset under $20.40 and 26-period EMA within the subsequent few hours. The prolonged plunge would invalidate the bias described above. However the drop may settle at $19.81 or the downtrend line.
The Relative Energy Index (RSI) and On Steadiness Quantity (OBV) registered a downtick, indicating that bulls could possibly be undermined within the brief time period.
AVAX recorded improved traders’ confidence, however…
As per Santiment’s information, AVAX recorded enhancing traders’ confidence from 5 February, as evidenced by the flipping of weighted sentiment from adverse to optimistic. Notably, the traders’ outlook may have been boosted by the rising growth exercise in the identical interval.
It confirmed that traders felt assured by the community’s prospects, which was additionally mirrored in a surge in worth.
Learn Avalanche’s [AVAX] Value Prediction 2023-24
Nonetheless, the Funding Charge was comparatively flat in the identical interval. Regardless of being optimistic, the dearth of extra demand for the asset within the derivatives market may undermine the robust uptrend momentum wanted to bypass the value rejection degree at $21.04.
Due to this fact, AVAX restoration momentum could possibly be restricted, and merchants ought to look ahead to the value rejection degree at $21.04 alongside BTC’s worth motion.