Avalanche’s RSI was in an overbought position.
However, other metrics and market indicators were bearish.
Avalanche [AVAX] investors had a good start to 2023 as the token made huge gains on its chart. According to CoinMarketCapAVAX’s price is up more than 30% in the past seven days, and at the time of writing, it was trading at $15.35.
Top gainers in @Avalancheavax Ecosystem Last 24 hours 🚀🚀$XAVA @AvalaunchApp $SAVAX @BenqiFinance $AVAX @avalancheavax $JOE @traderjoe_xyz $ALFA @alphanturedao $AAVE @AaveAave $SYN @SynapseProtocol $QI @BenqiFinance $FXS @fraxfinance $UNI @uniswap #avalanche $AVAX pic.twitter.com/8g9Iw1bHIx
— AVAX Daily 🔺 (@AVAXDaily) January 12, 2023
Realistic or not, here it is AVAX’s market cap in BTCs requirements
This huge price increase can be attributed to Avalanche’s latest partnership with AWS, which would promote the widespread use of blockchain technology in businesses and government agencies. Not only that, but AVAX has also made it to the list of the top winners in the Avalanche ecosystem in the last 24 hours.
However, the investors had reason to be concerned as CryptoQuant’s data revealed a major bearish signal, preventing AVAX’s price from rising further in the coming days.
Avalanche investors should be careful
According to CryptoQuant’s data, AVAX’s Relative Strength Index (RSI) was in an overbought position, indicating an imminent trend reversal. Interestingly, Avalanche’s NFT ecosystem experienced growth, as per AVAX Daily, AVAXThe company’s market capitalization increased by 8%, while volume increased by almost 20%.
🔺Avax NFT Weekly Highlights🔺
Market Cap: $43.05 million
Volume: $219.69K
Sale: 9129Overview 🧵👇#AVAX #Avalanche $AVAX #NFT #GameFi pic.twitter.com/YXU19vCAb7
— AVAX Daily 🔺 (@AVAXDaily) January 12, 2023
Avalanche’s development activity has also increased recently, which has been a positive sign. Aside from this, the rest of the on-chain metrics supported a price drop.
For example, AVAX’s Binance payback rate registered a sharp decline, due to less demand from the derivatives market. After peaking, AVAX’s positive sentiment also declined, which was not in favor of the token.
Source: Sentiment
Read Avalanche [AVAX] Price prediction 2023-24
Is sales pressure inevitable?
AVAXThe s daily chart showed that the Money Flow Index (MFI) tracked the RSI and was also in the overbought zone, which could create selling pressure and lower the price of AVAX in the coming days. The On Balance Volume (OBV) and Chaikin Money Flow (CMF) both registered down ticks, increasing the likelihood of a price drop.
Nevertheless, the Exponential Moving Average (EMA) ribbon showed the possibility of a bullish crossover, which may help AVAX maintain its uptrend.
Source: TradingView
This post These factors may cause the Avalanche bull rally to grind to a halt
was published first on https://ambcrypto.com/avalanches-bull-rally-might-come-to-a-halt-because-of-these-factors/
