AVAX traders looking to sell may want to read this before making any moves

Disclaimer: The accusation presented does not represent financial, investment, trading, oregon different types of proposal and is solely the writer’s opinion

• AVAX’s MFI was successful an overbought portion and is ripe for a imaginable terms reversal
• However, a breakout supra $12.10 would invalidate the bearish forecast 

Avalanche’s [AVAX] 2023 rally gained implicit 14% aft rising from $10.71 to $12.30. It past cooled off, and the terms correction settled astatine $11.45.

At property time, AVAX was successful different uptrend but faced a situation aft Bitcoin [BTC] failed to flooded $17K resistance. AVAX was trading astatine $11.77 and could autumn little to retest the $11.45 enactment if the BTC terms correction continued.

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 Read Avalanche’s [AVAX] Price Prediction 2023-24

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The people astatine $12.10: Can the bulls purpose astatine it?

AVAX fell beneath its precocious December trading scope of $11.59 – $11.85 but recovered coagulated enactment astatine $10.71. The modulation into the caller twelvemonth formed a treble bottom, which acceptable the signifier for a terms recovery.

However, AVAX encountered a bearish bid artifact astatine $12.10, forcing it to a terms correction, which was held successful cheque by enactment astatine $11.45.

The property clip terms betterment whitethorn beryllium hard arsenic the Money Flow Index (MFI) had reached overbought territory. This suggests that accumulation has peaked and organisation could beryllium underway, which could trigger a terms reversal.

The Relative Strength Index (RSI) was rejected astatine the midpoint but moved somewhat up and sideways. The On-Balance Volume (OBV) besides declined slightly. This indicated that buying unit gradually accrued aft a steep decline, but it was not capable to propulsion the bulls to people the $12.10 level.

Therefore, AVAX could autumn backmost to $11.59 oregon $11.45. Short sellers tin merchantability precocious and bargain backmost cheaper astatine these levels.

However, a breakout supra the $12.10 bearish bid artifact would invalidate the forecast. Such a determination could let AVAX bulls to people $12.46, particularly if BTC is bullish.

AVAX’s OI fell, but its outlook and request successful the futures marketplace remained unchanged

According to Coinglass, AVAX’s unfastened involvement accrued from mid-December and appeared to person peaked astatine property time. This indicated that AVAX saw an accrued inflow of wealth into the options and futures markets.

However, the diminution successful AVAX’s OI astatine property clip suggests that much wealth was leaving the futures market.

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Nonetheless, AVAX’s sentiment remained positive, and request successful the derivatives marketplace remained unchanged, arsenic evidenced by the affirmative and unchanged Binance Funding Rate for the AVAX/USDT pair.

This means that AVAX could perchance rally if BTC makes a betterment attempt. Therefore, investors should ticker BTC earlier taking immoderate action.