March 25, 2023

Home Altcoin Avalanche 'bull lure' dangers pushing AVAX value down by 30% in February – Cointelegraph

Avalanche 'bull lure' dangers pushing AVAX value down by 30% in February – Cointelegraph

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The value of AVAX has greater than doubled in 2023 however a rising divergence between a number of key metrics hints at a bearish reversal forward.

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

AVAX value chart paints bearish divergence

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

In different phrases, the value of AVAX has been making greater highs because the 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 value reversal.

AVAX/USD every day value chart. Supply: TradingView

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

The value-RSI and price-volume divergences seem as AVAX value continues its 2023 uptrend . Notably, Avalanche has rallied by greater than 100% year-to-date to $22.50 as of Feb. 2, helped by enhancing 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 through IntainMARKETS Subnet.

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

Avalanche value dangers drop 30% in February

AVAX’s value 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 value 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 stage additionally coincides with the falling wedge breakout goal mentioned in this analysis.

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

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

This text doesn’t comprise 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.

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