Altcoins

‘Exhausted’ AVAX may not follow the general trend; Instead, here’s what’s up

The primary half of August introduced good tidings for AVAX holders, as has been the case for many cryptocurrencies. Nevertheless, the market is now about to enter the second half of the month, with AVAX already displaying indicators of a possible pullback.

AVAX’s bulls demonstrated sturdy momentum within the first week of August. Nevertheless, the second week simply concluded with a notable decline in momentum. Any upside over the previous few days was additionally met with some resistance, particularly close to the $30-price vary.

Exhausted bulls?

AVAX’s newest efficiency is no surprise. Particularly since it’s because the resistance stage appeared to be manifesting after it not too long ago retested its ascending help line.

The latter is a part of the ascending channel by which AVAX has been buying and selling, after bottoming out close to mid-June.

Supply: TradingView

The pattern line is just not the one signal of a possible retracement. It additionally seems that AVAX’s rally briefly pushed it into overbought territory, based on the RSI. In reality, it has been hovering close to the overbought zone since, with the bulls making an attempt to push up additional.

These bearish expectations could be backed by a drop in quantity ever since AVAX entered its press time resistance zone. This remark appeared to align with the weaker bullish momentum seen over the aforementioned interval.

Supply: Santiment

As well as, investor sentiment registered a notable change this previous week. This modification was picked up by the FTX funding charge, which dropped considerably after hitting a month-to-month peak final week. This confirmed that buyers within the derivatives market are at present much less optimistic in regards to the bulls.

AVAX’s weighted sentiment has additionally dropped barely since 9 August. A affirmation that the sentiment is not predominantly bullish. In reality, at press time, it was within the detrimental zone, confirming that many buyers count on a reversal.

Supply: Santiment

Exploring all attainable outcomes?

If the market can keep its upside, chances are high that AVAX may retain its press time vary. Nevertheless, the prevailing sentiment means it won’t handle extra upside with out encountering vital promote stress.

Then again, that is the third time that AVAX is retesting the resistance line. That is affirmation that the press time northbound worth channel is rising stronger. In different phrases, buyers ought to be careful for a possible breakout, particularly if the following bullish wave returns with extra momentum.

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