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Moves that Hinder the Avalanche Bull Rally

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Avalanche’s RSI is in an overbought position. However, other market metrics and indicators are bearish. Investors in Avalanche [AVAX] have started 2023 on a positive note as the token made significant gains on its chart. According to CoinMarketCap, the price of AVAX has risen over 30% in the past seven days, and at the time of writing, it is trading at $15.35. True or not, here is the main market of AVAX in terms of BTC.

This price hike can be attributed to Avalanche’s new partnership with AWS, which is said to lead to the widespread use of blockchain technology in businesses and government agencies. Not only that, but AVAX has also been on the list of top winners in the Avalanche ecosystem for the past 24 hours. However, investors have reason to worry as data from CryptoQuant revealed a strong bearish signal, which could prevent the price of AVAX from rising in the coming days.

Investors in High Water Should Be Careful

According to data from CryptoQuant, AVAX’s Relative Strength Index (RSI) is in an overbought position, suggesting a reversal in the near future. Interestingly, Avalanche’s NFT ecosystem has seen growth, according to AVAX Daily, AVAX’s market capitalization has increased by 8%, while its volume has increased by almost 20%.

Avalanche’s development activity has increased recently, which is a good sign. Apart from these, other metrics show support for low prices.

For example, Binance’s AVAX exchange rate saw a sharp drop, reflecting low demand from the stock market. After peaking, the positive effects of AVAX also declined, which did not support the brand.

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Is Avalanche Market Pressure Inevitable?

The daily chart of AVAX revealed that the Money Flow Index (MFI) is following the RSI and is in the buy zone, which may trigger selling pressure and reduce the price of AVAX in the coming days. Both On Balance Volume (OBV) and Chaikin Money Flow (CMF) recorded declines, increasing downside risks to prices. Nevertheless, the moving average ribbon (EMA) has shown the possibility of a bullish crossover, which can help AVAX to maintain its progress.

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