Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Short-term bulls face two critical hurdles
- Open interest, negative financing rates fell
The May CPI report indicates that US inflation continues to cool. It remains to be seen whether the Fed will be influenced to pause rate hikes based on the data and other variables.
Read Avalanche [AVAX] Price prediction 2023-24
But the crypto market posted mixed results following CPI data. In particular, Avalanche [AVAX] tried to recover, but hit a key resistance level in December 2022/early January 2023. In addition, more roadblocks ahead could slow a sharp upward move for the altcoin.
Can bulls get around the roadblocks?
Source: AVAX/USDT on TradingView
The RSI and CMF have been improving steadily over the past few days. It shows increased buying pressure and capital inflow for AVAX. But the RSI hit the median level and could meet little resistance before continuing.
In addition, there are two fair value gap (FVG) zones of $11.7 – $13 (white) and $13.2 – $13.7 (red). The latter sits close to the previous low of $13.7, while the former aligns with the late December/early January resistance level ($12.1).
It means that the stretch above the current price level up to the low range is a resistance area. A negative price reaction from the above bearish zone could drag AVAX lower towards USD 11.2 or USD 10.
However, a bullish BTC, especially above $26.6k, could lead AVAX to cruise through the above bearish zone. A session close to the low range could give bulls more advantage to target higher resistance levels at $14.5 and $15.
OI and financing rates were negative
Source: Coinglass
Bulls could still have a tough job given the drop in OI (open interest) rates from >$60M to less than $40M on the Binance exchange. It indicates a bearish attitude in the futures market.
How many Worth 1,10,100 AVAX’s today?
The above negative sentiment is further supported by the negative financing percentages registered from 10 June. While negative funding rates have eased significantly over the past three days, most exchanges have yet to register a positive rate for AVAX.
Source: Coinglass