Avalanche (AVAX) has found itself ensnared within a critical price zone, grappling with a lackluster trading volume that has hindered its price action. The coin’s journey has been fraught with challenges as market sentiment takes a bearish stance, casting shadows over its potential upward trajectory.
The recent attempt at a bullish surge, stemming from the $11 support level, encountered a formidable obstacle at the $15.8 resistance level. This pivotal juncture proved to be an insurmountable barrier, leading to an abrupt price rejection.
The consequence of this rejection has been instrumental in preserving AVAX’s bearish market structure, leaving traders and investors grappling with uncertainty.
AVAX Long/Short Ratio Signals Predominance Of Sellers
On closer examination of the trading landscape, the long/short ratio in the four-hour timeframe reveals a striking imbalance in favor of sellers. Data sourced from Coinglass paints a telling picture, with a staggering 56.5% of open contracts adopting short positions.
Source: Coinglass
This lopsided ratio serves as a clear indication that a significant cohort of market participants anticipates AVAX’s downward trajectory to persist, amplifying the prevailing bearish sentiment.
The culmination of these factors has translated into AVAX’s current price of $12.46, as reported by CoinGecko. Over the past 24 hours, the cryptocurrency has experienced a modest decline of 0.6%, reflective of the prevailing market volatility.
AVAX price today. Source: Coingecko
Furthermore, the seven-day trend highlights a marginal contraction of 0.2%, further underscoring the turbulent nature of AVAX’s recent price movements.
Uncertainty Looms As Sellers Maintain Grip
As AVAX navigates this challenging phase, uncertainty looms large over its immediate future. The lack of trading volume has left the cryptocurrency vulnerable to sudden and sharp price fluctuations, while the prevailing bearish sentiment continues to deter potential investors from entering the market.
In this climate of uncertainty, all eyes remain fixated on the interplay between support and resistance levels., According to a recent price analysis, the token’s ability to transcend the $15.8 resistance level will likely dictate its trajectory moving forward.
AVAX market cap at $4.2 billion today. Chart: TradingView.com
Should this barrier be breached, it could instill newfound confidence among traders, potentially mitigating the bearish grip that currently envelopes the market sentiment.
AVAX finds itself at a critical crossroads, grappling with a lack of trading volume and a prevailing bearish sentiment. The recent price rejection has sustained the cryptocurrency’s bearish market structure, with the long/short ratio skewing significantly towards sellers.
As AVAX treads cautiously through this uncertain terrain, the cryptocurrency community watches, eager to discern whether the current challenges will pave the way for a resurgence or further deepen its bearish trajectory.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Token Gamer
