Avalanche (AVAX) Gains Momentum but Faces Selling Pressure

Bullish Signs for Avalanche  

Trading within an ascending channel typically signals positive momentum. The pattern suggests buyers are gaining strength, but sellers continue to apply resistance. This is evident in Avalanche’s price action, which remains within the defined range. 

The Moving Average Convergence Divergence (MACD) indicator also highlights increasing buyer activity. On August 17, AVAX’s MACD line crossed above the signal line, a bullish indicator. Additionally, a positive funding rate suggests more traders are betting on a price increase. 

Challenges to AVAX’s Growth  

Despite these bullish signals, some indicators reveal weaknesses. AVAX’s Relative Strength Index (RSI) is at 39.53, well below the neutral 50 mark. This indicates that selling pressure still exceeds buying interest.  

The Chaikin Money Flow (CMF) remains negative, signaling that buying pressure isn’t strong enough to offset the ongoing selling activity. 

If sellers gain more control, AVAX might break below the current support line, possibly revisiting the August 5 low of $19.54. However, sustained buying could push the price higher, potentially reaching $28.64. 

AVAX remains at a crossroads as it balances between bullish momentum and persistent selling pressure.