Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- $12 has been a roadblock for the past few days.
- Buying volumes and open interest rates skyrocketed.
Avalanche [AVAX] bulls got a vital boost after overcoming a major $12 hurdle. The roadblock was key in late December 2022/early January 2023, holding back the bulls for the past few days. But AVAX took a cue from Bitcoins [BTC] retested $29k and broke the obstacle.
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BTC’s move was surprising given the US SEC’s pending lawsuit against it Binance And Coin base. Nevertheless, the upturn provided altcoins, including AVAX, with a new breath of life to reverse recent losses.
What awaits AVAX?
Source: AVAX/USDT on TradingView
Despite breaking the $12 roadblock, AVAX isn’t quite out of the woods just yet. The RSI (Relative Strength Index), which tracks buying and selling pressure, has been below 50 since April. It indicates that there was selling pressure during the same period.
Similarly, OBV (On Balance Volume) fell but recovered at time of writing – demand for AVAX improved. As the RSI moves closer to the 50 mark, bulls may find resistance.
Indicators aside, the price action must overcome another trendline resistance, near $13.0, to move higher.
So a price rejection of $13.0 could cause AVAX to pull back to $12.03 or $11.2. An extreme correction could ease on the $10 psychological level.
Conversely, further bullish intent may be confirmed if AVAX crosses $13 and trendline resistance (cyan). In such a scenario, the $13.88 resistance will be the direct target for bulls before attempting to retest $15.
Purchase volumes and OI improved
Source: Coinalyse
AVAX recorded an increase in CVD (Cumulative Volume Delta) from June 20, according to Coinalyze’s 1-hour chart. This came after a recent steady drop in the indicator over the past few days, indicating that buying volumes and sentiment improved on June 20 following BTC’s rebound.
How many Worth 1,10,100 AVAX’s today?
Similarly, open interest rates (OI) rose during the same period, reaching $60 million. While this indicates an optimistic sentiment, both metrics were falling at the time of writing, suggesting a turning point was imminent. Therefore, trendline resistance is an important level for bulls to crack or falter.