AVAX shows a bearish crossover, indicating a shift from bullish to bearish momentum.
Open Interest and whale activity decline, signaling investor caution and reduced market confidence.
Short positions dominate, suggesting most investors expect further declines in AVAX's price.
Avalanche (AVAX) has been on a strong run, but recent trends raise concerns. After hitting $55, AVAX has struggled to hold onto gains. The altcoin dropped to a low of $40, sparking questions about the future. With a bearish crossover showing up, many are wondering if a bigger shift is coming.
https://twitter.com/CryptoAmb/status/1868296201503723810 Bearish Crossover Explained
A bearish crossover on the Stoch RSI has added to the concerns surrounding AVAX. At 30.09, this signal indicates that momentum has shifted. The market sentiment is changing from bullish to bearish, suggesting sellers could take control. The Simple Moving Average (SMA) has also flipped over the price, confirming this trend.
Further signs of weakness come from the drop in Open Interest. Over the past week, Open Interest per Exchange fell from $219.5 million to $178.4 million. This shows that investors are becoming more cautious, closing positions and avoiding new ones.
The Sentiment Among Investors and Whales
Investor sentiment is clearly turning bearish. Large holders, or whales, are showing a sharp decline in activity. Inflows dropped from 8.55 million to 2.12 million. This drop suggests whales are stepping away from buying AVAX. Moreover, short positions dominate the market.
The long/short ratio shows that 51.96% of positions are now short. This indicates that most investors are betting on further price declines. Looking ahead, the outlook for AVAX seems bearish. A further decline to $43 could be on the horizon. However, a breakout from this range could push AVAX back up to $55, although resistance remains.
The bearish crossover in AVAX may signal a bigger shift in market sentiment. With investor confidence dropping, AVAX faces a potential decline to $43. A breakout could lead to a return to $55, but caution is needed. Keep an eye on these shifts to make informed decisions.
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