Market Overview: Avalanche (AVAXUSD) Rallies on Strong Volume and Volatility

• Avalanche broke above key resistance at $24.41, closing the 24-hour period at $25.15, signaling renewed bullish momentum.
• Volume surged to 138.54 at the session's close, confirming strength in the breakout.
• Relative Strength Index peaked at overbought territory (92+), suggesting potential pullback risk.
• Bollinger Bands expanded, reflecting rising volatility as AVAXUSD traded near the upper band.
• A bullish engulfing pattern formed at the end of the 24-hour period, reinforcing the breakout signal.

Opening and Closing Summary

Avalanche (AVAXUSD) opened at $23.20 on 2025-08-26 at 12:00 ET, traded as high as $25.15, and as low as $23.70, closing at $25.15 on 2025-08-27 at 12:00 ET. Total volume for the 24-hour window was 398.66 units, with a notional turnover of $9,702.37 (volume × price). The asset has shown a sharp rally in the final hours of the session, indicating strong short-term buyer interest.

Structure and Candlestick Formations

The 15-minute chart revealed a bullish reversal pattern beginning at $23.81, followed by a bullish engulfing pattern on the $24.41–$25.15 move. These formations suggest a shift from bearish to bullish sentiment. Key support levels were identified at $23.81, $23.70, and $23.20, while resistance was decisively broken at $24.41, $24.74, and now $25.15. A doji at $24.05 and a long bearish candle at $24.07–$23.95 also hinted at internal market indecision before the breakout.

Technical Indicators: MACD and RSI

The RSI reached overbought territory, peaking above 92, indicating that AVAXUSD may face near-term profit-taking or a consolidation phase. MACD turned sharply positive as the price surged, showing accelerating bullish momentum. The histogram expanded, suggesting increased buying pressure, especially in the last 45-minute candle.

Bollinger Bands and Volatility

Bollinger Bands showed a volatility expansion, widening in the final 4 hours of the session. Price closed near the upper band, which is a positive sign for bullish continuation. The middle band was around $24.19, and the lower band was near $23.25. The move above the upper band confirms a breakout in a high-volatility environment.

Volume and Turnover Analysis

Volume spiked significantly in the final 45-minute candle, reaching 82.54 units at $25.15. This confirms strong buyer participation at the breakout level. Notional turnover also increased correspondingly, aligning with the price rise. No material divergence was observed between price and turnover, suggesting the move is supported by genuine buying interest rather than manipulation.

Fibonacci Retracements and Key Levels

The $24.41 level was a 61.8% Fibonacci retracement of the earlier $23.81–$24.41 upswing. The final breakout above $25.15 represents a new swing high that could lead to a 38.2% retracement target at $24.74 or a 61.8% target at $24.41 on any near-term pullback.

Forward-Looking View and Risk Consideration

The strong close above $25.15 may attract more buyers targeting the next Fibonacci level of $24.74 or beyond. However, with the RSI in overbought territory and a high volatility profile, a pullback to $24.74 or $24.41 could be imminent. Investors should watch for a breakdown below $24.41, which could trigger a retest of key support levels.