- The previous assistance zone at $23.5 worked as resistance throughout the current bounce.
- The strength of the sellers was too expensive and the sag is anticipated to continue today.
Avalanche [AVAX] was nearing the $19.6 short-term assistance level. Its pattern stayed bearish on the 1-day chart. With Bitcoin [BTC] listed below $60k, belief in the crypto market appeared weak.
This might see Avalanche plunge even more. The futures market of AVAX was not bullish either. What are the cost targets in case of a drop?
Avalanche retests previous assistance zone as resistance
Source: AVAX/USDT on TradingView
From mid-June to early August, the $23.5 level was an assistance. It was breached throughout the extreme selling pressure and was retested over the previous couple of days as resistance. An AVAX bounce to the $22.8 level was consulted with rejection.
The everyday RSI was still listed below neutral 50 and the OBV continued to pattern downward. Together they suggested strong bearish momentum and an absence of need.
The $19.2 and $14.37 levels are the next targets, based upon current rate action and the Fibonacci extension levels. The trajectory of Bitcoin might greatly affect AVAX, and belief was turning bearish considering that BTC was listed below $60k once again.
Speculative interest was weak throughout the rate bounce
The futures market was not enthusiastic of an Avalanche healing. When the rate reached $22.8 on the 8th of August, the financing rate was simply hardly favorable.
The Open Interest climbed up from $152 million to $165 million. It highlighted the absence of bullish conviction in the market regardless of the rate bounce.
Read Avalanche's [AVAX] Cost Prediction 2024-25
Ever since, both the OI and the financing rate have actually dropped lower together with the cost. The area CVD remained in a sluggish decrease.
Together, the short-term market belief was bearish, and more losses are anticipated.
Disclaimer: The info provided does not make up monetary, financial investment, trading, or other kinds of suggestions and is exclusively the author's viewpoint
