Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- AVAX faltered at the March low of $13.89.
- More long positions broke, providing leverage to sellers.
Avalanche [AVAX] Long-term recovery seems far from sight, with price action firmly below the March low and recent lower highs. AVAX saw a downward trend from $21.56 in April to a low of $10 in mid-June. The mid-June recovery faltered below the March low of $13.89, preventing AVAX from breaking above $14.
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A recent report found that Avalanche’s daily activity was booming, with Trader Joe and Benqi being one of the main drivers. However, such an impressive celebration was not a strong incentive for AVAX to cross $14.
Is range expansion likely?
Source: AVAX/USDT on TradingView
The H4 and D1 market structures were clearly bearish, highlighting the advantage of sellers when resistance is met. In this case, the main resistance is the March low at $13.9 – slightly above the recent low.
Overall, AVAX has been reaching lower lows since mid-April, indicating a strong downtrend. Over the same period, the RSI remained below or slightly above neutral before retreating to lower ranges. It indicates that buying pressure remained subdued during the period.
At the time of writing, the RSI was hovering past the neutral level. But the MFI has crossed the medial level – suggesting that recent buying pressure has eased while volume has been significant. The CMF was also above zero – positive capital inflows.
So AVAX’s range formation from $12.1 – $13.9 could extend in the coming days unless BTC takes a clear direction. The king coin has also been consolidating above $30,000 since June 21.
A bullish or bearish breakout invalidates the neutral position. On the upside, $15.5 will be the immediate target, while $10 and $11 are the main supports to watch out for in the south.
Long discouraged
Source: Coinglass
How many Worth 1,10,100 AVAX’s today?
According to Coinglass, more than $80,000 worth of long positions have been liquidated in the last 12 hours as of writing.
During the same period, short positions for less than $1,000 were liquidated, underscoring seller leverage and AVAX’s likely drop to the low $12 range before a possible rebound.
