【$AVAX Signal】Hold Cash and Wait — Downtrend Continuation, Deep Imbalance, No Clear Support

$AVAX Continues to decline steadily on the 4-hour chart after breaking below EMA20, with heavy sell orders accumulating. Currently in a downtrend continuation pattern, no clear sign of a trend reversal.

🎯 Direction: Hold Cash

Market Analysis: Price has broken below all short-term moving averages (EMA20: 8.856). RSI (36.44) is not oversold but continues to decline. The key points are the deep imbalance (-1.40%) and the buy/sell ratio (0.46), indicating selling pressure dominates and buying power is weak.

Hardcore Logic: Open interest remains stable, but funding rate is negative. Coupled with falling prices, this is not typical short squeezing but more like passive long liquidation or active short accumulation. The 4-hour candlestick shows each rebound high is decreasing, and the latest candlestick’s buy/sell ratio is only 0.46, indicating active selling during declines.

Order book shows that ask orders in the 8.573-8.592 range are significantly thicker than bid orders, forming a clear supply wall. Although there are buy orders around 8.55-8.57, their volume is insufficient to reverse the trend, more like a liquidity zone for weak rebounds.

Overall judgment: Currently lacking the “key support confirmation + buy absorption” structure needed for a bullish move, and also lacking the “high funding rate + decreasing open interest” top resonance for a bearish move. The best strategy is to stay in cash and observe, waiting for the price to show a support structure or re-establish above EMA20 with improved depth, possibly at lower levels like 8.30-8.40.

Trade here 👇 $AVAX

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