Market Overview: Avalanche (AVAXUSDT) Breaks Out with Strong Momentum

• Avalanche (AVAXUSDT) surged 7.9% in 24 hours, breaking above key resistance at $24.50 with strong volume.
• A bullish engulfing pattern formed near $24.20, signaling a potential short-term reversal.
• RSI hit 65, suggesting moderate momentum with no overbought conditions yet.
• Volume spiked dramatically in the 19:30–20:30 ET window, confirming the breakout.
• Bollinger Bands expanded, showing rising volatility and a strong trend continuation.

Avalanche (AVAXUSDT) opened at $23.64 on 2025-07-19 at 12:00 ET and closed at $24.49 at 12:00 ET on 2025-07-20, reaching a high of $25.18 and a low of $23.62. Total volume traded was 2.55 million AVAX, with notional turnover of $61.3 million, reflecting strong accumulation and breakout activity.

Structure & Formations

Avalanche broke out of a tight consolidation range after a bullish engulfing pattern formed on the 15-minute chart at $24.20. The breakout was confirmed by a strong rally to $24.77 and followed by a retest of the breakout level, which held. A doji near $24.50 on the 03:45 candle suggests a temporary pause in momentum, but the overall trend remains bullish. Key support now sits at $24.20 and $23.85, with resistance above at $25.18 and $25.30.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages are both bullish, with price above both lines. The daily chart shows the 50-period moving average at $24.00, the 100-period at $23.70, and the 200-period at $23.45. Price is currently above all three, indicating a strong uptrend.

MACD & RSI

The MACD has been positive for most of the session, with a bullish crossover and expanding histogram, indicating growing momentum. The RSI reached a peak of 65, suggesting moderate strength without overbought conditions. A retest of the $24.50 level could see RSI dip into neutral territory, but as long as it remains above 50, the bullish bias holds.

Bollinger Bands

Bollinger Bands expanded significantly during the breakout phase, with price pushing to the upper band at $25.18 and pulling back toward the center. This suggests increasing volatility and a strong continuation trend. Price has remained above the 20-period moving average inside the bands, showing no signs of a reversal.

Volume & Turnover

Volume spiked sharply during the 19:30–20:30 ET window, with over 131k AVAX traded at $25.12, confirming the breakout. Notional turnover also surged during this period, aligning with price action. No significant divergence between price and turnover was observed, indicating strong conviction in the move.

Fibonacci Retracements

A Fibonacci retracement from the recent low at $23.62 to the high at $25.18 shows key levels at $24.53 (38.2%) and $24.32 (61.8%). Price has tested the 38.2% level and held above it, suggesting continued bullish momentum. A break below $24.32 could trigger a short-term pullback toward $24.00.

Avalanche may continue its upward trajectory in the next 24 hours, potentially testing $25.30, provided volume and momentum remain aligned. However, investors should be cautious of a pullback to $24.20 or $24.00 if the RSI shows signs of overbought conditions or a bearish divergence emerges.