- AVAX faces resistance at $18.56 despite optimistic attempts.
- Bearish momentum confirmed as MFI indicates increasing selling pressure.
- Traders should exercise caution as AVAX moves into oversold territory.
Early optimistic attempts to reverse the Avalanche (AVAX) market trend were met with resistance at the day’s high of $18.56. Bears took control of the market after the setback, and the price dropped to $17.73, its lowest point in the preceding 24 hours.
AVAX’s value at the time of writing was $17.85, down 2.12% from its previous closing. The current state of the market and fluctuations in the cryptocurrency market, as BTC price bounces between 29k and 30k, may be to blame for this decline.
During the decline, market capitalization fell by 2.11% to $5,824,646,496, while 24-hour trading volume increased by 12.39% to $173,031,976. This movement suggests that investors may have sold part of their holdings during the downturn. Nonetheless, there was increasing purchasing activity from other investors who took advantage of the decreased pricing.
With a reading of 59.62 and a southward trend, the Money Flow Index (MFI) confirms the bearish momentum in AVAX by indicating that selling pressure is escalating. When evaluating long positions, traders may want to exercise caution if the MFI continues to decline and breaks below the oversold level. This could point to the emergence of a more serious downward trend.
The Relative Strength Index (RSI), which currently has a value of 50.85, is moving below its signal line and into the oversold region, suggesting that AVAX may still experience some short-term downward pressure. Consequently, traders may wait for the RSI to move out of the oversold territory and cross above its signal line before entering an extended position.
On the 4-hour price chart for the AVAX market, the signal line is at 94, and the Klinger Oscillator is currently at -340. The AVAX market’s Klinger Oscillator is in negative territory and below the signal line, which indicates the development of selling pressure and the potential for a buying opportunity for investors wishing to enter the market.
According to the Aroon up and down readings of 28.57% and 71.43%, the AVAX market is experiencing a severe decline. Given that the Aroon down value depicts the strength of the trend downwards and the Aroon up value displays the strength of the uptrend, this crossover suggests a higher possibility that the market will shortly continue to move downward. The market is under more pressure to sell than to acquire, as evidenced by the significantly higher Aroon down value.
AVAX has been bearish, but there is still plenty of interest among traders buying the dip. With increased trading activity, the market may be ready for a bullish run soon.
Disclaimer: Cryptocurrency price is highly speculative and volatile and should not be considered financial advice. Past and current performance is not indicative of future results. Always research and consult with a financial advisor before making investment decisions.