Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and is the opinion of the author only
- AVAX has seen a 20% price increase in the last 10 days
- AVAX demand in the derivatives market remained positive
Avalanche [AVAX] It increased by 20% and rose from $10.85 to $12.97 in the last 10 days. Based on the daily charts, the AVAX bulls may be targeting an important supply area.
At the time of publication, AVAX is swinging in the red and trading at $12.53. You just experienced a short-term price rejection of $12.97. similar, BTC It faced rejection at $17.50K, but could rise if the US Consumer Price Index (CPI) announcement on January 12 favors traditional equity markets.
Such a rally in BTC could boost the AVAX bulls to break the $12.97 hurdle and target this supply area.
Read Avalanche [AVAX] predict the price 2023-24
The $14.0 Supply Zone: Can the Bulls Get There?
The Relative Strength Index (RSI) on the daily chart was at 57, a significant level above the midpoint of 50. It has risen from the oversold territory since the beginning of the year. This showed that the buying pressure has increased steadily over the past 10 days. As such, the bulls had the upper hand.
Therefore, the AVAX bulls may try to push above the $12.97 level and target the $14.0 supply area, especially if BTC breaks above the $17.50K mark. However, the AVAX bulls may face stiff resistance from the sellers if they reach the supply area.
So investors with diamond hands can wait and sell in this area. However, the strong bullish BTC could try to push AVAX above the supply area as well, but the bulls will have to overcome some additional hurdles if it comes to that.
Are your holdings blinking green or red? Check with AVAX Profit Calculator
Alternatively, the bears may gain more leverage before AVAX hits supply and pushes prices lower. Such a downward move would invalidate the bullish bias above. The downside trend can be verified by the $11.73 or $10.85 support levels.
AVAX saw positive sentiment and demand in the derivatives market.
According to Santiment, the Weighted Sentiment and Binance Funding Ratio of the AVAX/USDT pair has been on the positive side since January 5th. This showed that investors remained bullish on AVAX, and demand in the derivatives market remained unchanged despite a slight decline in prices at the time of writing.
However, the decline in trading volumes could undermine the bullish momentum of the bulls. Any spike in volume coupled with a bullish BTC could signal a significant rally towards the supply area. Therefore, investors should track the movements of Bitcoin.