August’s first half brought optimism for Avalanche holders. And that has been the narrative for most digital coins. Nevertheless, the market enters the month’s second half, with Avalanche already revealing possible downside signals.
AVAX bulls revealed stable momentum during the initial week of August. Nonetheless, the 2nd week just ended with a visible momentum decline. Also, any upside within the past few days met some hurdles, especially around the $30 value area.
Exhausted Bulls?
Avalanche’s recent performance isn’t surprising as the resistance zone appeared to manifest following a retest of ascending support. The latter represents a portion of the climbing channel that AVAX has traded inside since bottoming in mid-June.
The trend-line isn’t the only signal of possible retracements. The Relative Strength Index shows Avalanche’s rally slightly propelled AVAX into the overbought region. Moreover, the alt has hovered near an overbought area as bulls try to push higher.
Furthermore, investor sentiment recorded a significant shift last week. The FTX funding rate picked up the change as it declined significantly after touching a monthly high within the previous week. That showed that market players within derivative markets are less expectant about AVAX bulls.
Avalanche’s weighted sentiment also plummeted briefly since August 9. That confirmed that sentiments are no longer primarily bullish. Moreover, negativity appeared during this publication, suggesting that most investors expect reversals.
Exploring All Potential Outcomes?
The marketplace sustaining its upsides might see AVAX keeping its press time value area. Nevertheless, the current sentiment shows the altcoin might not ensure further upticks without suffering a massive sell strength.
On the other side, AVAX retests the resistance for the 3rd time. That shows that the northbound price channel during this publication is gaining strength. Traders should consider possible breakouts, especially if the coming bullish wave sees increased momentum.
Bulls in the crypto market appear exhausted following the last run-up. The upcoming sessions will likely see brief slides before assets contemplate the next moves. Bitcoin failed to reclaim $25K even after briefly breaching it recently. That means imminent downsides, and BTC might explore $24K today, sliding from levels above $24.5K.
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