Avalanche: This level can make or break AVAX’s ability to recover

warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice

  • The avalanche broke through high volatility to indicate a clear selling advantage on its chart.
  • Cryptocurrency funding levels have improved but not yet positive.

Avalanche [AVAX] The bulls finally took the trendline support (white, dashed) after several months. The resulting rally put the rally above its own EMA range as buying pressure escalated.

Read Avalanche Price Prediction 2023-2024

But the market-wide bounces dampened AVAX’s attempts to maintain a bullish advantage on the charts. Bulls can hope to turn the trend in their favor from the immediate trendline support.

At press time, AVAX is trading at $13.29, down 10.74% in the past 24 hours.

AVAX fell below the daily EMA ranges

Source: TradingView, AVAX / USDT

The $14.8 level resumed a strong buying rally in late October, a rally that helped the AVAX bulls turn trendline resistance into support more than seven months later.

The much needed pattern break highlighted an upward correction above the daily EMA lines. Meanwhile, the broader market sentiment caused a pullback from the $19.6 ceiling which triggered an evening star candle.

A bounce from the $12.6-$13 support range near trendline support could reignite some buying pressure. Under these circumstances, buyers could test the range resistance at $15 – $16.4 in the upcoming sessions.

With the short-term exponential moving averages heading south, sellers will aim to keep the buying rally in check. If broader sentiment continues to deteriorate, any drop below the vital $12.6 level and trendline support could signal a sell signal with downside risks of over 12%.

The Relative Strength Index (RSI) continues to show a bearish stance while hovering in the bearish territory. However, last month’s lows have flattened at the border of the oversold mark. A short-term bounce may be reasonable if the index repeats this behavior.

Measures the capabilities of AVAX recovery

Source: feeling

According to Santiment data, AVAX fundraising on Binance reached a record low on November 10. But in the past 24 hours, that rate has gone up. On the other hand, the price action has not registered an upward trend yet.

However, the funding rate has not yet turned positive on most exchanges.

Source: Coinglass

To achieve this, the buy/sell ratio skewed slightly in favor of the sellers while the broader sentiment worsened. However, the objectives will remain as discussed. Finally, traders should take it into consideration Bitcoin movement and its effects on the broader market to make a profitable move.

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