• AVAX has faced consistent losses on the price charts in recent weeks.
• The market structure of Avalanche over the past month showed strong bearishness while volume indicators suggested buying pressure might not be enough to stem the losses.
• The RSI, OBV, and CMF all showed bearish momentum and capital outflow from the Avalanche market.
AVAX Price Struggles
AVAX has been struggling with consistent losses on its price charts in recent weeks. Market structure of Avalanche over the past month displayed strong bearishness, while volume indicators suggest that buying pressure might not be enough to stem these losses.
On-Chain Metrics
On-chain metrics show a decline in network activity for AVAX, however investors can watch out for the planned token unlock as it may have an impact on its price. The Fibonacci retracement levels highlighted areas of interest on the chart which could offer support or resistance for AVAAX depending on where it moves next.
Indicators Point To Bearish Momentum
The RSI, OBV, and CMF all pointed to bearish momentum and capital outflow from the Avalanche market. These indicators also show that $10.5 is a critical level which AVAX bulls have not yet managed to defend against. A move below this level could potentially offer a good shorting opportunity.
24 Hour Activity
Coinalyze data pointed towards some bidding activity for AVAX in the past 24 hours as prices bounced from $10.27 to $10.4 on 21 August 2021. However this bounce was relatively small so it remains to be seen whether it will sustain itself or if prices will eventually dip back down again due to lower levels of demand overall.
Conclusion
In conclusion, given current market conditions and technical indicators such as RSI, OBV and CMF showing bearish sentiment along with declining network activity for AVAX, investors should exercise caution when considering trading opportunities within this market particularly around key levels such as $10 and $10..5 .
