‘Exhausted’ AVAX may not follow the general trend; Instead, here’s what’s up
The first half of August brought good tidings for AVAX holders, as has been the case for most cryptocurrencies. However, the market is now about to enter the second half of the month, with AVAX already showing signs of a potential pullback.
AVAX’s bulls demonstrated strong momentum in the first week of August. However, the second week just concluded with a notable decline in momentum. Any upside over the last few days was also met with some resistance, especially near the $30-price range.
AVAX’s latest performance is not surprising. Especially since this is because the resistance level seemed to be manifesting after it recently retested its ascending support line.
The latter is part of the ascending channel in which AVAX has been trading, after bottoming out near mid-June.
Source: TradingView
The trend line is not the only sign of a potential retracement. It also turns out that AVAX’s rally briefly pushed it into overbought territory, according to the RSI. In fact, it has been hovering near the overbought zone since, with the bulls attempting to push up further.
These bearish expectations can be backed by a drop in volume ever since AVAX entered its press time resistance zone. This observation seemed to align with the weaker bullish momentum seen over the aforementioned period.
Source: Santiment
In addition, investor sentiment registered a notable change this past week. This change was picked up by the FTX funding rate, which dropped substantially after hitting a monthly peak last week. This confirmed that investors in the derivatives market are currently less optimistic about the bulls.
AVAX’s weighted sentiment has also dropped slightly since 9 August. A confirmation that the sentiment is no longer predominantly bullish. In
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