Positive vibes for Avalanche owners pervaded the early half of the month. And that’s basically the story of every AVAX cryptocurrency ever. However, Avalanche is showing possible downward warnings as the market enters the second part of the month.
During the first week of August, AVAX bulls showed consistent progress. But the second week just finished with a noticeable loss of steam. Similarly, the last several days’ attempts at an upswing have been greeted with resistance, particularly near the $30 price point.
Have the Bulls had enough?
Given that the resistance zone looked to materialize after a retest of rising support, Avalanche’s current performance isn’t shocking. Since hitting bottom around the middle of June, AVAX has been trading inside the aforementioned ascending channel.
If the price moves away from the trend line for other reasons, that’s not necessarily a bearish indicator. By the looks of the Relative Strength Index, Avalanche’s recent upswing has pushed the stock into overbought territory. Even as bulls attempt to drive the alt higher, it has been trading near an overbought region.
Last week also saw a notable shift in investor mood. Within the past week, the FTX financing rate hit a monthly high, but has since dropped dramatically. That demonstrated that derivative market participants have lower expectations for AVAX bulls.
The weighted sentiment about Avalanche has also temporarily dropped since August 9. That proved that people aren’t predominantly bullish any longer. Not only that, but pessimism surfaced throughout this publication, indicating that most investors anticipate a reversal.
Inquiring into Every Possible Outcome?
If the market continues its current upward trend, AVAX may be able to maintain its current valuation. However, the market mentality indicates that the altcoin may not secure additional increases without experiencing huge sell strength.
And yet, AVAX is back at the resistance level for a third time. This indicates that the price channel heading north during this publication is gathering momentum. If the forthcoming bullish wave gains momentum, traders might think about taking positions outside the range of the wave.
After the recent surge, bulls in the cryptocurrency market seem spent. Future meetings will most likely consist of brief slides before assets consider next steps. Although Bitcoin did momentarily surpass $25,000 in value lately, it has since failed to recapture that price. This signals that losses are on the horizon, and BTC could drop to $24,000 today after trading above $24,550 yesterday.