Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Price action eased to a bullish confluence area.
More long positions were liquidated as sellers posted more profits.
Avalanche [AVAX] price performance was greatly boosted thereafter Ripple Labs’ win around mid-July. However, the euphoria dissipated after the victory, causing altcoins to reverse the gains. So far, AVAX is down from $16 and reached a crucial confluence area and bullish zone near $13.
Is your wallet green? look at the AVAX Profit Calculator
In the meantime, Bitcoin [BTC] struggled to close above $30,000 ahead of the Fed decision on July 25/26.
If BTC takes more losses after the Fed decision, AVAX’s bullish zone could be invalidated. However, bulls could get a reprieve if BTC defends the $29.5k after the Fed’s announcement.
Will the confluence area hold?
The $16 price rejection allowed short sellers to enter the market, exposing AVAX to depreciation to $13. In particular, the overall price action during the recovery from mid-June created a bullish channel pattern.
The recent pullback has hit the channel’s low range at $13.3. Interestingly, the range low is in a confluence area with a bullish order block (OB) at $12.9 – $13.4 (cyan).
Thus, the confluence area could only be a strong bullish zone if BTC does not register sharp losses in the coming days. The immediate targets will be the mid range near $14.5 or the high range near $15.5.
But a drop below the confluency zone ($13) will expose AVAX to a likely $12 retest, especially if BTC falls lower after the Fed decision.
Meanwhile, the RSI (Relative Strength Index) retreated and rested at the neutral level while the OBV (On Balance Volume) moved sideways. It indicates stagnant buying pressure and demand ahead of the Fed decision.
More long positions liquidated
According to Coinglass liquidation data, the futures market has been in a bearish grip for the past few hours. The dominant lush green color means that more long positions in the futures market have been destroyed.
How many 1,10,100 AVAXs worth today?
Of the >$270k total AVAX liquidations, more than $260k accounted for devastated long positions. It highlights the bearish grip and sentiment over the weekend.
The above bearish tendency calls for close monitoring of BTC price action following the Fed’s decision before attempting to go long from the confluence and bullish zone described above.
This post Avalanche drops to a bullish zone, but…
was published first on https://ambcrypto.com/avalanche-eases-to-a-bullish-zone-but/