Avalanche ‘bull lure’ dangers pushing AVAX worth down by 30% in February


You might also like

Avalanche (AVAX) bulls ought to brace themselves for influence led by a rising divergence between severalkey indicators on the daily-timeframe chart.

AVAX worth chart paints bearish divergence

The every day AVAX chart exhibits a traditional bearish divergence between its worth and relative power index (RSI), a momentum oscillator forming since Jan. 11.

In different phrases, the worth of AVAX has been making larger highs for the reason that mentioned date. However, however, the coin’s every day RSI has been forming decrease highs. This divergence recommend a slowdown within the  momentum of the AVAX/USD pair, which can result in a worth reversal.

AVAX/USD every day worth chart. Supply: TradingView

As well as, the declining volumes in the course of the course of AVAX’s ongoing uptrend additionally hints on the identical bearish cues.

The value-RSI and price-volume divergences seem as AVAX worth continues its 2023 uptrend . Notably, Avalanche has rallied by greater than 100% year-to-date to $22.50 as of Feb. 2, helped by bettering risk-on sentiments and  information of its partnership with Amazon.

On Jan. 31, Avalanche partnered with Intain, a structured finance platform that facilitates greater than $5.5B in property throughout greater than 25 offers to run its digital market IntainMARKETS by way of IntainMARKETS Subnet.

The value of AVAX rallied almost 20% after the announcement.

Avalanche worth dangers drop 30% in February

AVAX’s worth has efficiently closed above two key resistance ranges: a multi-month descending trendline (blacked) and its 200-day exponential shifting common (200-day EMA; the blue wave) in the course of the ongoing rally. 

AVAX/USD every day worth chart. Supply: TradingView

Avalanche now eyes a breakout above $22.75, which has been serving as resistance since August 2022, for a possible breakout to $30 as its subsequent upside goal. This degree additionally coincides with the falling wedge breakout goal mentioned in this evaluation.

In different phrases, an roughly 30% acquire from the present worth ranges. 

Conversely, a pullback from the resistance degree, fueled by the bearish divergence indicators mentioned above, might ship AVAX worth towards its 50-day EMA (the pink wave) at roughly $15-$16, down about 30% from present costs.

This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a call.