Avalanche Price Trapped at $6.48 as Sellers Dominate Market Flow
Avalanche's price has been stuck at $6.48 for the past 24 hours, with every short-term moving average converging at this exact same price. Alvin Lang notes that aggressive taker sellers are outpacing buyers nearly 2-to-1, indicating a lack of fresh demand to support the current price.
The 7-day SMA, 20-day SMA, and 12-period EMA all meeting at $6.48 is a rare occurrence that usually precedes a directional breakout or a flush. Given the current flow data, Lang leans towards the latter.
The daily ATR of $0.26 and pinched Bollinger Bands indicate a low-energy state in the market. However, the derivatives market shows a different story, with top traders holding a 67.9% long skew and a 2.1 ratio, but active buyers are outnumbered by aggressive sellers.
The risk-reward favors the short side, according to Lang, who recommends triggering a short trade on a clean hourly close below $6.40. The first target is $6.32, followed by $6.19 and potentially $5.90 if the lower Bollinger Band breaks.