Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- AVAX was stuck in the key price zone as a lack of trading volume limited price action.
- Market sentiment was heavily bearish.
The dwindling volumes of Avalanche [AVAX] has caused the altcoin price action to stall at a key price level. This came after the bullish push off from the $11 support level hit a major hurdle at the $15.8 resistance level. The resistance level price rejection maintained AVAX’s bearish market structure.
Read Avalanches [AVAX] Price Forecast 2023-24
Meanwhile Bitcoin [BTC] up sharply in the past 24 hours to hit $30,000 before returning to trade at $29.5k, as of going to press.
Stalling price action evidenced by contracting Bollinger Bands
Source: AVAX/USDT on trade view
While AVAX’s market structure has largely been bearish, bulls have tried to rally to no avail. The price turnaround by bulls was hampered by declining volumes, which led to lower prices.
The 12-hour chart has shown a tightening of the Bollinger Bands, indicating strong up/down price movement for AVAX. However, neither buyers nor sellers seemed to have the upper hand with indicators flashing mixed signals.
While the Relative Strength Index (RSI) remained below neutral 50, the Moving Average Convergence Divergence (MACD) posted a bullish crossover, albeit a weak one. A shining light for the bulls was the Chaikin Money Flow (CMF) which reversed positive with a reading of +0.05, highlighting growing capital inflows.
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With a previous price report highlighting the possibility of bulls rallying from the 61.8% Fib ($12.30) or 78.6% Fib ($11.29), these could be critical price points for buyers. Alternatively, sellers could maintain the bearish downtrend with the $11 support level as a near term target.
Short-term market sentiment has been heavily bearish
Source: Coinglass
The exchange long/short ratio on the four-hour time frame leaned heavily in favor of sellers. Dates from Mint glass showed that 56.5% of open contracts were short positions. This indicated that sellers were ready to continue AVAX’s bearish market structure for more profit.