Bears tighten grip on $AVAX as open interest rises alongside falling prices
AVAX traders can maintain a bearish bias but also be wary of a short squeeze.
The Avalanche bulls’ struggles have centered around $7 recently
In a recent report, AMBCrypto detailed how the altcoin’s price trends were stalling even after a 20x surge in daily transactions onchain. The long-term price trend of Avalanche was pointed downward.
It did not help that in the past 24 hours Bitcoin [BTC] fell below the $65.5k local support zone and was trading below $65k too at the time of writing. If this selling persists, it could trigger a bearish market sentiment shift, dragging AVAX further south.
The longer-term downtrend saw a new swing low registered at $5.68. On the 12-hour timeframe price chart above, this has given rise to a bearish swing structure. A bullish structure would have come into play had the $7.08 swing high been broken.
It was tested in early July, but not broken. The subsequent rejection has dragged prices lower. Over the past two weeks, AVAX has traded between $6.38 and $6.78.
At press time, the band of support around $6.40 appeared to have been breached. This could accelerate the downtrend and drive prices toward $6 and below in the coming days.
AVAX traders can maintain a bearish bias but also be wary of a short squeeze.
The Avalanche bulls’ struggles have centered around $7 recently
In a recent report, AMBCrypto detailed how the altcoin’s price trends were stalling even after a 20x surge in daily transactions onchain. The long-term price trend of Avalanche was pointed downward.
It did not help that in the past 24 hours Bitcoin [BTC] fell below the $65.5k local support zone and was trading below $65k too at the time of writing. If this selling persists, it could trigger a bearish market sentiment shift, dragging AVAX further south.
The longer-term downtrend saw a new swing low registered at $5.68. On the 12-hour timeframe price chart above, this has given rise to a bearish swing structure. A bullish structure would have come into play had the $7.08 swing high been broken.
It was tested in early July, but not broken. The subsequent rejection has dragged prices lower. Over the past two weeks, AVAX has traded between $6.38 and $6.78.
At press time, the band of support around $6.40 appeared to have been breached. This could accelerate the downtrend and drive prices toward $6 and below in the coming days.