Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
The short-term range showed confluence with the volume profile tool. Avalanche bears were strong in the $18 area.
Avalanche was trading within a range on the price charts and the $16.4 support zone has been defended several times in March. Due to the halted block production on March 23, AVAX bulls stopped near the $17.6 zone.
Read Avalanches [AVAX] Price Forecast 2023-24
Bitcoin has also been trading within a range for the past week and the price action could heavily influence the direction of Avalanche. As things stand, AVAX short sellers can look for a selling opportunity in the event of an upward move.
The confluence of range highs and Value Area Highs could tempt bears
Source: AVAX/USDT on TradingView
The Volume Profile Visible Range tool showed the Point of Control (red) to be at $17.3. This marked it as the point where most of the trading volume occurred in the visible range, stretching back to early March.
The Value Area High was $17.8 and the Value Area Low was $15.8. In addition, AVAX traded within a range (yellow) ranging from $15.47 to $18. The horizontal level at $16.37 and the mid-range level at $17.73 have acted as support for the past few days.
At the time of writing, Avalanche saw another bounce from the support level. This could cause the price to move towards the $18 resistance. In that scenario, short sellers may look for shorter-term rejection before entering short trades.
Is your wallet green? Check out the Avalanche Profit Calculator
Invalidating this bearish idea would be a session close above USD 18.3. The bearish targets are the $16.4 support zone and the range lows at $15.5, but the latter could be an ambitious target.
Spot CVD showed signs of recovery after a long downtrend
Source: Coinalyse
The forecast funding rate was barely positive, showing that market sentiment was only weakly optimistic. The spot CVD saw a slight rebound after weeks of downtrend, indicating that buying pressure was present but not dominant.
The fact that would encourage bulls was the steady decline in Open Interest since mid-March. Each bounce in AVAX prices saw weaker and weaker bounces on the OI, which showed fewer bullish speculators over time. This was a sign of bearish sentiment.
This post Avalanche Volume Profile shows two critical resistances bulls need to overcome
was published first on https://ambcrypto.com/avalanche-volume-profile-shows-two-critical-resistances-for-bulls-to-overcome/
