AVAX was one of the cryptocurrencies that showed significant gains after the recent bottom. A healthy sign that it has experienced some accumulation after the price plunged to recent lows. Zooming out, however, reveals that it has traded in a bearish wedge pattern and is about to break through.

AVAX is currently in a narrow price range that has been constrained in recent years by falling resistance and support lines. The setback from mid-last week resulted in a retest of the support line on June 13 and 14. It then registered a slight rise which pushed it towards the resistance line as the two lines converge. This means that the price is due for a breakout to the top or bottom.

No avalanche of buying pressure?

AVAX only managed to rise slightly after the support retest. A sign that some accumulation that occurred at recent lows was not enough to cause a major rise.

AVAX was trading at $16.31 as of press, which is a modest gain from the recent low of $14.58. However, it rallied over 10%, making it one of the best winners of the past 24 hours.

Source: TradingView

AVAX indicators show a significant chance of a bullish breakout of the wedge pattern. The RSI recently fell into the oversold zone and the MFI indicator at the time of writing pointed to significant accumulation from its recent low. The -DI has also been at a disadvantage for the past two days, suggesting that the bears have lost some of their momentum. However, the bears did not register a significant gain in momentum, likely due to prevailing market uncertainty.

On the on-chain side, Avalanche’s Binance funding ratio metric has improved slightly since June 13. This is a sign that the demand for AVAX improved slightly after the recent crash and is consistent with the slight increase in price. Market capitalization also showed a significant improvement from the recent low of $4.3 billion on June 13 to $4.8 billion on June 15.

Source: Santiment

NFT transactions on avalanche have also improved in recent days. Total NFT trading volumes peaked at $2.27 million on June 14. This was the highest NFT trading volume in the past four weeks.

AVAX stats indicate that it is on a recovery path and this reflects the observations of the price chart. However, there is still a risk of more downward pressure if the market fails to bring in enough buying volume for a significant rally.



This post AVAX [Avalanche] comes in a narrow price range as it prepares to exit…

was published first on https://ambcrypto.com/avax-avalanche-enters-into-narrow-price-range-as-it-prepares-to-exit/

Author

Write A Comment