Avalanche (AVAX): What Recent Retest of This Crucial Level Could Mean
Avalanche bulls are eventually displaying signals of action following massive crashes post-April. The alternative token has shown substantial surges since bottoming in mid-June. Nevertheless, the resistance zone at $21 has capped AVAX’s upside. While publishing this post, Avalanche appeared to retest this mark.
AVAX has had its price actions inside a triangle setup constricted by a lateral resistance and ascending support. The formers served as a foothold in May before June’s bearish tendencies dragged the alt beneath the area. AVAX has been trying to recover from the dip since thin. The alt re-challenged the hurdle during this publication.
Avalanche might be readying for another decline following the resistance retest. It trades at $21.07 at press time, and AVAX’s bullish momentum deteriorated around this level. Meanwhile, the alt crossed beyond the 50-day MA on Saturday. Investors have been using the MA as a ‘sell’ sign. Therefore, enthusiasts can expect a similar outcome.
The mid-week rally saw AVAX pushing past the Relative Strength Index’s 50% mark but yet to exhibit overbought tendencies. Contrarily, the Money Flow Index (MFI) remained inside the overbought territory, increasing bearish retracement possibilities.
Whales’ outflows also support reversal likelihoods for Avalanche around the mentioned resistance zone. The whale supply metric has registered outflows since July 14. It had declined by 0.42% during this publication. Moreover, Avalanche’s social dominance declined significantly over the period under review.
Why Bullishness Amidst Whale Outflows?
Whale activity since July 13 didn’t affect AAVE’s price action. That could be due to massive retail demand. July 12 saw whale supply holding increasing, suggesting whales massively purchased the latest dip. Moreover, the support retest catalyzed bullish sentiments. Nevertheless, some whales resorted to enormous cash-outs as dependable retail demand backed the upside.
Also, Massive organic demand, especially within the non-fungible token (NFT) market, supported AVAX’s upside. NFTs’ trading volume climbed to $7.01M by July 15. Nevertheless, the past two days saw the metric declining and might not be enough to contribute to extended bullish movements.
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