Market Overview: Avalanche (AVAXUSD) 24-Hour Analysis

Generated by AI AgentAinvest Crypto Technical Radar
Monday, Sep 1, 2025 1:32 pm ET2min read
AVAX
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Aime RobotAime Summary

- AVAXUSD fell from $24.01 to $22.93 overnight, forming bearish patterns with no reversal signals.

- 20-EMA/50-EMA crossover and RSI near oversold levels confirmed bearish momentum despite temporary support at $22.99.

- Volatility spiked during breakdowns, with price near Bollinger Band lower edge and 38.2% Fibonacci retracement at $23.85.

- Proposed short strategy targets $23.41 (61.8% retracement) with stop-loss above key resistance amid weak morning volume.

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AVAXUSD
opened at $24.01, fell to a 24-hour low of $22.93, and closed at $23.80 at 12:00 ET.
• Price dropped sharply overnight into early morning, forming a bearish continuation pattern with no immediate reversal signals.
• Volatility expanded during the overnight session, with volume spiking at key breakdown levels.
• RSI approached oversold territory during the selloff but failed to generate a clear reversal signal.
• Price found temporary support near $22.99 before a modest rebound in morning hours.

Avalanche (AVAXUSD) opened at $24.01 on 2025-08-31 at 12:00 ET and closed at $23.80 at the same time on 2025-09-01. The 24-hour range was $24.22 (high) to $22.93 (low), with total trading volume of 921.49 and notional turnover of $21,229.85.

Structure & Formations


AVAXUSD formed a bearish breakdown pattern during the overnight session, especially from 02:30 to 04:45 ET, where price dropped from $23.15 to $22.99 on increased volume. A bearish engulfing pattern appeared at 02:30 ET, confirming bearish momentum. The price later found a temporary support at $22.99, forming a small bullish reversal pattern at 05:15 and 05:30 ET. However, the overall trend remains bearish with no strong reversal confirmation yet.

Moving Averages


On the 15-minute chart, the 20-EMA and 50-EMA were closely aligned, both declining with the price trend. The 20-EMA crossed below the 50-EMA, confirming a bearish crossover. On the daily chart, price has been below the 50-DMA and is approaching the 100-DMA, suggesting continued bearish pressure.

MACD & RSI


The MACD turned negative during the overnight sell-off, with a bearish crossover of the signal line at 02:30 ET. The RSI dropped below 30 in the early morning hours, indicating an oversold condition, but failed to form a strong bullish divergence.

Bollinger Bands


Volatility expanded significantly during the overnight hours as AVAXUSD moved below the lower
Bollinger
Band at $23.09 and found support at $22.99. Price is currently sitting within the bands but near the lower edge, suggesting potential for a bounce or further decline.

Volume & Turnover


Volume spiked during the overnight session, particularly around the breakdown at 02:30 and 04:45 ET. Notional turnover also spiked during these periods, confirming the bearish move. However, volume has remained muted during the morning consolidation phase, suggesting lack of conviction in the rally.

Fibonacci Retracements


The recent 15-minute low at $22.93 and high at $24.22 suggest a key 38.2% retracement level at around $23.85 and a 61.8% level at $23.41. Price currently sits just below the 38.2% retracement, which may offer near-term resistance if buyers step in.

Backtest Hypothesis


A potential backtesting strategy involves entering a short position on a bearish engulfing pattern confirmed by a crossover of the 20-EMA below the 50-EMA and a RSI drop below 30. A stop-loss could be placed above the nearest resistance, while a target may be set near the 61.8% Fibonacci retracement at $23.41. This strategy would benefit from a period of high volatility and confirmation of bearish momentum.