What are the Key resistance levels in Avalanche Volume profile?
Avalanche AVAX has been trading in a certain price range on the charts. The price of AVAX keeps falling to a support level of $16.4. Every time it is defended by buyers, who prevent the price from falling further.
- Avalanche AVAX’s price keeps falling to its support level of $16.4
- There are many bearish indicators, even the weakly bullish indicator might be able to turn the tables for AVAX
With the halt in the production of AVAX coins on 23rd March, the coin witnessed a rise in its price. But after reaching a resistance price level of $17.6. The price stopped rising as the buyers were unable to push it any higher. The current price of Avalanche AVAX is $16.46.
Bitcoin is another currency that is also being traded in its range. If Bitcoin is able to surpass this resistance it can change the path for Avalanche as well. As a major player in the crypto market. Bitcoin has a potential impact on the price of other cryptocurrencies as well.
Currently, if the price of AVAX were to move upward, as an opportunity the short sellers may sell their AVAX holdings and make a profit.
The intersection of range highs and Value Area Highs may attract bears
The Value Area High and Value Area Low are two other important levels on the chart. The Value Area High was at $17.8, and the Value Area Low was at $15.8. AVAX has been trading within a range (yellow) that goes from $15.47 to $18, as per the Volume Profile Visible Range tool.
The tool also pointed at the point of control of AVAX which was $17.3. Most of the trading in early March occurred at this point,
Recently, the price of AVAX has got off the support level at around $16.37 and $17.73. Consequently, the price could go up toward the $18 resistance level. Nonetheless, once the price is at this level, short sellers may look for signs. As the price may fall back again before they sell.
Moreover, if the price of AVAX goes above $18.3, it could invalidate the bearish signals. This means that it will become less likely for the price to drop. But if the price still falls, then the bearish support zone is at $16.4, and the range lows at $15.5.
A slight recovery in the CVD
The market for Avalanche AVAX appears to have weakly bullish signals. As the predicted funding rate is slightly positive. The spot CVD witnessed a small increase after a few weeks of a downtrend. This indicates that there are few buyers in the market and not very strong.
The decrease in the Open interest OI since mid-March might attract more buyers or bulls. This means that there are very few people are betting on the price to rise any further, which is a bearish indicator.