AVAX Price Recaptures Key Level, But Momentum Exhausted and Pullback Expected
The price of AVAX has recaptured its 200-day SMA at $8.05 for the first time in months, which is a significant milestone as it signals that the asset may be recovering from its structurally broken state.
However, with momentum fully exhausted and taker sell pressure dominating short-term flow, a retest of $7.80 support is expected before any further gains can be made.
The Stochastic indicator is deep in overbought territory, with %K running well ahead of %D in a spread that historically precedes mean reversion, while the MACD histogram has completely flatlined at zero, indicating that buyers have used up all their incremental firepower.
The derivatives picture shows that retail is piling on longs, but top traders are even more convicted at 75.4% long, and the taker buy/sell ratio over the past hour is sitting at 0.72, meaning aggressive sell-side market orders are outpacing aggressive buy-side orders by a meaningful margin.