AVAX Price Holds Key Accumulation Zone Amid Market Uncertainty

The price of AVAX price has been consolidating within a critical range of $23 to $25, an area where some traders are accumulating positions.

Key Takeaways:

AVAX price slipped 4.57%, changing hands at $24.65.

Some traders are accumulating AVAX in a key zone, and a move below $23 could lead to further declines.

RSI and MACD indicators suggest that bearish momentum is weakening.

On-chain data shows that most AVAX holders are currently at a loss, which could impact market sentiment.

Open Interest (OI) for future contracts declined, indicating that traders might be closing their trades.

After a 4.57% decline in the last 24 hours, AVAX price trades at $24.65. The cryptocurrency’s market value has been dwindling as it fails to gain any bullish momentum. However, some analysts believe that the token is in a key accumulation phase, and a potential reversal could be on the horizon if buying pressure increases.

According to a recent analysis, a critical zone for accumulating AVAX is between $23 and $25. Some traders are buying in this range, and a recent statement by analyst ChristiaanDefi points out this ideal entry zone.

If the price of AVAX drops below $23, the bearish trend may continue, driving prices down to $20 or even $15.50, which serves as long-term support.

Currently, the RSI is at 39.78, indicating strong bearish pressure. However, the metric is in the oversold zone (below 35), suggesting that a bullish reversal could be imminent. A cross above the midline (50) would confirm a bullish move.

The MACD is bearish, with the MACD line below the signal line. But the MACD histogram is turning positive, suggesting that selling pressure is starting to weaken. A bullish crossover in the MACD would indicate a potential shift in momentum.

Data analysis indicates that a majority of AVAX holders are at a loss, which could impact market sentiment. As evident from the chart, most holders purchased AVAX at a higher price than the current market value, indicated by the red bubbles on the chart.

On the other hand, a low percentage of holders are in the green, indicating that acts of selling due to profits are not well driven by traders. The $24.72 mark dictates a specific range within it that traders might want to purchase since they expect the price might bounce back up or sell in order not to incur deeper losses.

The market data depicts that the current Open Interest (OI) for the future contracts has shrunk by 5.16% in the next 24 hours. This could imply that the traders are now closing their trades than opening a new one, which may be an indication of scaling out trader activity.

The decline of open interest together with the prices suggest that many traders are waiting for further signals on which direction the trend will take. This can be as a result of selling pressure reducing as AVAX price stabilizes, but the OI continuing to go down.

The views and opinions stated by the author, or any people named, are for informational purposes only and do not establish any investment, financial, legal, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.