- Avalanche tested the support zone of $ 16 and bounced higher.
- Despite the rejection and the rising activity on the chain, long -term bulls may not be rewarded in the coming weeks.
Avalanche (AVX) Has been in a trend since June 11. It dropped by 26% for two weeks, but the recovery started on Monday with a rally of 9.26%.
Recently it was reported Smart money Investors had a profit and continued to keep their AVAX.
At the same time, retail investors have begun to take profits, and deriv dealers have started investing in short positions.
Source: Intothock
The activity on the chain has begun to increase significantly in recent days. It did not match the highs that were made in April, but the recording of the activity was encouraging.
The 7-day active addresses were 204% at the time of writing.
Prolonged activity can drive demand for avalanche and potentially help recover. The price measure also suggested a potential raisy reversal.
Profits for traders?
Source: AVAX/USDT on TradingView
The range (white) extended from $ 16 to $ 22.9, with its middle -class level to $ 19.5. The latest losses saw a re -examination of the interval, which had previously been defended as support in April and March.
Bulls won the battle again, and it seemed likely that Avax would climb to $ 19.6 middle class resistance.
However, the technical indicators remained baisse -like. The fantastic oscillator continued to reflect baisse -like speed, and OBV was low during its early May.
This indicated that sales pressure had the upper hand.
If the daily trade volume remains below the average in the coming days when Avalanche moves towards $ 19.5, traders should prepare for a rejection of the intermediate class resistance.
While 1-day diagram showed an interval formation and potential for a transition to $ 22.9, it must be acknowledged that Avalanche was shopping far south if it had been in December 2024.
The decline from $ 54 in December to $ 18.1 at the time of writing represented a price fall of 66.3% in six months.
Source: Intothock
The global in/out of pengemetrics showed that 65.95% of the holders were out of the money and 27.18% were for the money. This meant that there were a large number of holders who were willing to leave the market on Break-Even.
Although Avalanche can rally, the number of sellers who are willing to leave the market would remain high, as many had losses right now.
Given the weak feeling about most altcoins, it seemed as if avalanche investors would remain cautious until the bitcoin dominance began to throw and capital rotation to altcoins began to take place.
