Going long on AVAX? Here is the “but” to this possible trend reversal

1 year ago 100

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

  • A inclination reversal could beryllium imaginable if enactment astatine $10.86 holds
  • AVAX bulls could people contiguous absorption astatine $11.39

Avalanche [AVAX] fell implicit 25% from a precocious of $14.14 connected 13 December to a debased of $10.54 connected 30 December. However, AVAX broke retired supra $10.73 aft Bitcoin [BTC] surpassed $16.49k.

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

If BTC remains bullish and moves towards $17k, AVAX could people contiguous absorption astatine $11.39, offering a imaginable summation of implicit 4%.

At property time, AVAX was trading astatine $10.93, with method indicators suggesting that an uptrend could continue.

Will the enactment astatine $10.86 hold?

Source: AVAX/USDT connected TradingView

AVAX’s continued downtrend recovered a impermanent halt astatine $10.86. But is the enactment beardown capable to forestall the bears from lowering AVAX’s prices?

Technical indicators suggested that a enactment could hold. In particular, the Relative Strength Index (RSI) reversed aft sinking person to the oversold territory. This showed that though buying unit eased, it recovered slightly.

The On-balance Volume (OBV) besides increased, indicating an summation successful trading volume, which helped the betterment of buying pressure.

In addition, Chaikin Money Flow (CMF) crossed supra the zero mark, indicating an upward inclination reversal.

Therefore, AVAX could retest oregon interruption the erstwhile enactment astatine $11.39, representing a 4% summation from the $10.86 level. Thus, agelong positions could summation implicit 4% if the bulls support momentum.

However, a interruption beneath $10.63 would negate the supra bullish forecast. Such a downside determination could settee astatine $10.23 oregon $9.65, providing bears with a people for abbreviated selling.

Investors should truthful ticker the Money Flow Index (MFI). A interruption of the MFI supra the 50 mid-range would awesome beardown bullish momentum susceptible of retesting oregon exceeding $11.39.

How many AVAXs tin you tin for $1?

AVAX improvement enactment declined successful Q4, but request successful the derivatives marketplace fluctuated

Source: Santiment

AVAX’s improvement enactment fluctuated successful Q4 2022. The improvement enactment accrued steadily accrued successful October but declined by the extremity of the month, with a important upturn successful the 2nd fractional of November.

In December, improvement enactment accrued sharply but peaked successful the archetypal fractional earlier declining steadily thereafter. Throughout the period, prices correlated importantly with the improvement activity.

At property time, improvement enactment had bottomed out, arsenic had AVAX. Could this undermine the terms reversal? 

Nonetheless, capitalist assurance successful the plus improved, arsenic did the request successful the derivatives market, arsenic evidenced by the betterment successful weighted sentiment and Binance Funding Rates.

Improved sentiment could pump AVAX if its improvement enactment remains flat. Therefore, investors should show BTC’s show and AVAX’s wide sentiment with the advent of the caller year.

Ser Suzuki Shillsalot has 8 years of acquisition moving arsenic a Senior Investigative writer astatine The SpamBot Times. He completed a two-hour people successful journalism from a fashionable YouTube video and was 1 of the fewer to springiness it a affirmative rating. Shillsalot's writings chiefly absorption connected shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is simply a flimsy anticipation the illustration pic is AI-generated. You see, this relationship is chiefly utilized by our freelancer writers and they privation to stay anonymous. Wait, are they Satoshi? :/

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