Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- AVAX rose another 10% taking it to a critical price level.
- Market speculators rushed to act with a 24% increase in Open Interest.
Avalanche [AVAX] continued its bullish rally over the past day with a 10% increase. This took it to the resistance level of $11. Earlier in August, AVAX was rejected at this resistance level. So a bullish level break remains crucial for sustaining the bullish rally.
Is your portfolio green? Check out the Avalanche Profit Calculator
Meanwhile, Bitcoin [BTC] rose sharply towards the $28,000 price level, with an increase of 4.1% over the same period.
Is the buying pressure enough to turn the $11 price zone into support?
Source: AVAX/USDT on Trading View
The indicators on the chart strongly supported the bullish attempt to reverse the $11 price level. The OBV (On Balance Volume) increased in trading volume and increased from 60.06 million to 62.59 million.
Similarly, the RSI (Relative Strength Index) showed strong buying pressure by moving into the overbought zone. Furthermore, the CMF (Chaikin Money Flow) recorded a positive value of +0.30, which was a sign of massive capital inflows into AVAX.
Bulls can follow the trend with a session close to the $11 price level in the 12-hour time frame. This would give buyers an added advantage to pursue further gains of $12.5 to $13.6.
However, the inability to break the bearish resistance could hinder the bulls in the short term, with the possibility of a retracement to $10.
Open interest increased dramatically
Source: Coinalyse
Dates of Coinalyse showed that the OI (Open Interest) increased by 24.1% in the past day. This highlighted the huge support for buyers in the futures market.
How much is 1.10 or 100 AVAX worth today?
Funding rates were also largely positive, with market participants keen to ride the bullish wave.
A continuation of BTC’s uptrend would certainly see AVAX reverse the $11 level and provide a new buying opportunity for bulls towards the $12-$13 price zone.
