Avalanche (AVAX) surged 13.71% in less than 18 hours on Tuesday, April 7th. The move from $8.46 to $9.62 came along with high volume. The announcement that the Chicago Mercantile Exchange (CME) will introduce Avalanche-built futures in May may have boosted prices.
The boom in the overall market helped too AVAX cattle. And yet, as Coinalyze’s data showed, the rise in Open Interest paled in comparison to the 13% drop in price. The OI trend showed that the first rally against $9.6 saw a significant increase in OI compared to the second one from Monday.
In contrast, Spot CVD saw a sharp rise in the second session. During this move, the amount of money was negative.
This shows a group of unrelated signals. Putting it all together, speculative interest in the most recent hit of $9.62 was low, but my belief was strong.
And yet, the confidence of the place, including the rise in sales, was not enough for AVAX to break the $9.45-$9.60 zone.
On the 1 day chart, the swing pattern remained. Although the MFI was moving higher to indicate strong buying pressure and a rapid increase in April, the CMF remained below -0.05 indicating that investment funds have been coming from the AVAX.
The dominance of sellers was evident when the high of $10.34 was not returned in the mid-March session. Since then, the $8.3 position has been reassessed and will see a rebound.
What does it take for cows to thrive?
The sharp rise in the $9.60 supply zone was indicative of consumer fatigue. They destroyed themselves trying to force an explosion, but the dealers were strong. At the time of writing, CMF and MFI showed a short-term decline.
This goes well with different designs (purple) from $8.56 to $9.46. The second resistance within a few days at the high level means that the center of $9 has been holding strong.
Therefore, traders should be careful with another pull to $ 9 and $ 8.3, instead of waiting for a quick explosion beyond the next $ 9.6.
Brief Summary
- The announcement that CME Group will launch Avalanche Futures contracts helped start the rally from $8.4 to $9.6.
- The long-term price structure of AVAX has been subdued, with the altcoin trading within a long range since the end of March.
