Avalanche Volume Profile shows two critical resistances for bulls to overcome

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Dis­claimer: The infor­ma­tion pre­sent­ed does not con­sti­tute finan­cial, invest­ment, trad­ing, or oth­er types of advice and is sole­ly the writer’s opinion.

  • The short-term range showed con­flu­ence with the vol­ume pro­file tool.
  • Avalanche bears have been strong in the $18 area.

Avalanche trad­ed with­in a range on the price charts, and the $16.4 sup­port zone has been defend­ed mul­ti­ple times in March. The halt­ed block pro­duc­tion on 23 March saw AVAX bulls stopped near the $17.6 zone.


Read Avalanche’s [AVAX] Price Pre­dic­tion 2023–24


Bit­coin has also trad­ed with­in a range over the past week, and its price action could heav­i­ly influ­ence the direc­tion of Avalanche. As things stand, AVAX short sell­ers could watch out for a sell­ing oppor­tu­ni­ty in case of a move upward.

The confluence of range highs and Value Area Highs could entice bears

Avalanche Volume Profile shows two critical resistances for bulls to overcome

Source: AVAX/USDT on TradingView

The Vol­ume Pro­file Vis­i­ble Range tool showed the Point of Con­trol (red) to lie at $17.3. This marked it as the point where the most vol­ume of trad­ing occurred in the vis­i­ble range, which extend­ed back to ear­ly March.

The Val­ue Area High was at $17.8 and the Val­ue Area Low was at $15.8. More­over, AVAX trad­ed with­in a range (yel­low) that extend­ed from $15.47 to $18. The hor­i­zon­tal lev­el at $16.37 and the mid-range lev­el at $17.73 have act­ed as sup­port over the past few days.

At the time of writ­ing, Avalanche saw anoth­er bounce from the sup­port lev­el. This could see the price ascend toward the $18 resis­tance. In that sce­nario, short sell­ers can look for rejec­tion on low­er time­frames before enter­ing short trades.


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Inval­i­da­tion of this bear­ish notion would be a ses­sion close above $18.3. The bear­ish tar­gets are the $16.4 sup­port zone and the range lows at $15.5, but the lat­ter could be an ambi­tious target.

Spot CVD showed signs of recovery after a long downtrend

Avalanche Volume Profile shows two critical resistances for bulls to overcome

Source: Coin­a­lyze

The pre­dict­ed fund­ing rate was bare­ly pos­i­tive which showed the mar­ket sen­ti­ment was only weak­ly bull­ish. The spot CVD saw a minor bounce after weeks of a down­trend, which indi­cat­ed that buy­ing pres­sure was present but not dominant.

The fact which would encour­age bulls was the steady decline in Open Inter­est since mid-March. Each bounce in AVAX prices saw weak­er and weak­er bounces on the OI, which showed few­er bull­ish spec­u­la­tors over time. This was a sign of bear­ish sentiment.

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