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AVAX’s buying pressure at the $37.5 resistance level yielded results over the past 12 hours with a bullish break above the resistance level. Earlier, AVAX had traded within a compact range of $33 to $37.5, due to buyers inability to surmount the selling pressure.
The crossing of this significant bearish hurdle could spur on buyers with the possibility of reaching the $45 to $50 mark in the short term.
Emmanuel Musa
AVAX Registers Significant Rise in Capital Inflows
The Chaikin Money Flow (CMF) indicator which tracks the inflow and outflow of capital on spot markets registered a significant increase for AVAX. Over the past 24 hours, it hit +0.25 indicating increased capital inflows and as at press time, it maintained the strong capital outlook with a reading of +0.16.
This swift increase in capital inflows was reflected in the Relative Strength Index (RSI) buying pressure with the bullish reading rising to 61. This successfully established the bullish break of the resistance level.
Spot traders can leverage the buying pressure for short term gains. A long position from the current market price would yield gains of between 17% - 30%, if price gets to $45 to $50.
Traders in the futures market have already started to price in a bullish move for AVAX with its Open Interest (OI) rising by 2.81%. This was according to data by Coinalyze.
Typically, the Open Interest provides traders with real-time information about the liquidity and interest in a particular contract. With rising interest in AVAX futures, it further strengthens the possibility of bullish gains in the short term.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
