Avalanche's Price Surge May Be Short-Lived Amid Weak Buying Volume

Avalanche's recent price surge may be short-lived, according to analysis of its technical indicators. The altcoin has rallied by 5.95% in the past 24 hours, but this move is not accompanied by strong buying volume. In fact, its daily trading volume was down by nearly 8%, which could indicate that the rally is fragile.

Furthermore, speculative traders' reluctance to chase the move suggests a lack of conviction among investors. The token's open interest has only increased by 3.3% in the past day, another sign that the rally may not have much momentum behind it.

A closer look at Avalanche's long-term price trends reveals a bearish structure that is still intact. In February, the altcoin set a swing low at $7.55, which it broke in June. This breach originated from a high of $10.55 made in March and reached a low of $5.68.

The token's bounce from oversold conditions earlier in June has brought it to the 23.6% retracement level, but traders should be cautious as this area has served as a local resistance zone for the past three weeks. Key retracement levels at $8.11, $8.69, and $9.51 will be worth watching.