Avalanche (AVAXUSDT) Market Overview

• Avalanche (AVAXUSDT) saw a sharp pullback over 24 hours, closing near a key support level after a volatile mid-session selloff.
• Momentum indicators turned bearish midday as RSI dropped below 30, suggesting oversold conditions with potential for a near-term bounce.
• Volume surged during the selloff, especially around 19:45 ET, with large bearish candles confirming downside conviction.
• Bollinger Bands expanded, reflecting heightened volatility during the sharp correction, while 15-minute MA lines remained bearishly aligned.
• Fibonacci retracement levels suggest 24.85–25.00 as potential near-term support with 26.30–26.55 marking recent resistance.

Avalanche (AVAXUSDT) opened at $25.74 at 12:00 ET on August 24 and closed at $24.18 by 12:00 ET on August 25. The pair hit a high of $26.57 and a low of $24.00 over the period. Total trading volume amounted to 3,354,769.20 AVAX, while notional turnover reached $83,742,385.60.

Structure & Formations

AVAXUSDT formed a large bearish engulfing candle mid-session, marking a shift from consolidation to a sharp decline. Key support levels were tested around $24.85 and $25.00, with a possible rebound forming in the final hours. A doji near 05:00 ET suggested indecision, while the final candle at 16:00 ET showed bearish continuation with a weak close.

Moving Averages

On the 15-minute chart, the 20- and 50-period moving averages remained bearish, with price consistently below both. On a daily basis, the 50- and 200-day MAs suggest AVAX is below key medium-term support, reinforcing bearish sentiment. A retest of the 50-day MA at ~$25.20 could offer a potential floor for near-term buyers.

MACD & RSI

The 15-minute MACD turned negative midday, confirming bearish momentum. RSI crossed below 30 after 20:00 ET, entering oversold territory and suggesting a possible short-term bounce. However, the divergence between price and MACD during the pullback indicates caution — a rapid recovery may face resistance at 25.70–25.85 without significant volume.

Bollinger Bands

Bollinger Bands expanded during the sharp selloff from $26.50 to $24.00, showing a marked increase in volatility. Price spent the final hours of the 24-hour window near the lower band, suggesting oversold conditions. A breakout above the midline or a rejection at the lower band could signal a directional shift in the next 24 hours.

Volume & Turnover

Volume spiked sharply during the selloff, particularly around 19:45 ET, with the candle showing high volume and a large bearish move. The large volume-to-price alignment confirmed the bearish sentiment. In contrast, the final rebound saw moderate volume, indicating a weak potential reversal unless more buyers step in.

Fibonacci Retracements

Applying Fibonacci retracement levels to the 24-hour swing from $26.57 to $24.00, the 61.8% level is at ~$24.60, which may act as a critical support. The 38.2% level is around $25.25 and could offer a short-term bounce target if buyers return. On the 15-minute chart, retracements suggest 25.70–25.90 as potential near-term resistance levels.

Avalanche may test key support at $24.85–25.00 in the coming 24 hours, with a potential rebound into 25.20–25.40 if bulls gain control. However, bearish momentum remains strong, and a break below $24.60 could open the door for further downside to 24.30. Investors should remain cautious for any divergence in volume and momentum as the asset could either rally on oversold conditions or continue its downward trend.