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The primary half of August introduced good tidings for AVAX holders, as has been the case for many cryptocurrencies. Nonetheless, the market is now about to enter the second half of the month, with AVAX already displaying indicators of a possible pullback.
AVAX’s bulls demonstrated sturdy momentum within the first week of August. Nonetheless, the second week simply concluded with a notable decline in momentum. Any upside over the previous few days was additionally met with some resistance, particularly close to the $30-price vary.
Exhausted bulls?
AVAX’s newest efficiency isn’t a surprise. Particularly since it’s because the resistance degree appeared to be manifesting after it lately retested its ascending assist line.
The latter is a part of the ascending channel during which AVAX has been buying and selling, after bottoming out close to mid-June.
Supply: TradingView
The development line will not be the one signal of a possible retracement. It additionally seems that AVAX’s rally briefly pushed it into overbought territory, in response to the RSI. In truth, it has been hovering close to the overbought zone since, with the bulls making an attempt to push up additional.
These bearish expectations might be backed by a drop in quantity ever since AVAX entered its press time resistance zone. This statement appeared to align with the weaker bullish momentum seen over the aforementioned interval.
Supply: Santiment
As well as, investor sentiment registered a notable change this previous week. This modification was picked up by the FTX funding fee, which dropped considerably after hitting a month-to-month peak final week. This confirmed that traders within the derivatives market are at the moment much less optimistic concerning the bulls.
AVAX’s weighted sentiment has additionally dropped barely since 9 August. A affirmation that the sentiment is now not predominantly bullish. In truth, at press time, it was within the destructive zone, confirming that many traders anticipate a reversal.
Supply: Santiment
Exploring all attainable outcomes?
If the market can keep its upside, chances are high that AVAX would possibly retain its press time vary. Nonetheless, the prevailing sentiment means it won’t handle extra upside with out encountering important promote strain.
Then again, that is the third time that AVAX is retesting the resistance line. That is affirmation that the press time northbound value channel is rising stronger. In different phrases, traders ought to be careful for a possible breakout, particularly if the following bullish wave returns with extra momentum.
