Can AVAX cross the $11 hurdle?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- AVAX rose by another 10%, taking it to a critical price level.
- Market speculators rushed to get in on the action with a 24% rise in Open Interest.
Avalanche [AVAX] continued its bullish rally with a 10% pump over the past day. This took it to the $11 resistance level. Earlier in August, AVAX was rejected at this resistance level. Thus, a bullish break of the level remains critical to sustaining the bullish rally.
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Meanwhile, Bitcoin [BTC] climbed strongly toward the $28k price level with a 4.1% rise over the same period.
Is buying pressure sufficient to flip $11 price zone to support?
Source: AVAX/USDT on Trading View
The on-chart indicators strongly supported the bullish attempt to flip the $11 price level. The OBV (On Balance Volume) surged in trading volume, rising from 60.06 million to 62.59 million.
Similarly, the RSI (Relative Strength Index) displayed strong buying pressure by moving into the overbought zone. In addition, the CMF (Chaikin Money Flow) registered a positive reading of +0.30 which was a sign of massive capital inflows to AVAX.
Bulls can ride the trend with a session close above the $11 price level on the 12H timeframe. This would give buyers an added advantage to push for further gains at $12.5 to $13.6.
However, a failure to break the bearish resistance could hamper bulls in the short term with the possibility of a retracement back to $10.
Open Interest surged massively
Source: Coinalyze
Data from Coinalyze showed that the OI (Open Interest) rose by 24.1% over the past day. This highlighted the massive backing for buyers in the futures market.
How much is 1,10, or 100 AVAX worth today?
Likewise, the funding rate was largely positive with market participants keen to catch the bullish wave.
A continuation of BTC’s uptrend would definitely see AVAX flip the $11 level and provide another buying opportunity for bulls to the $12-$13 price zone.
