Market Overview for Avalanche/Tether (AVAXUSDT) – 2025-12-06

Summary
• Price action shows a 1.8% 24-hour decline in AVAXUSDT, with bearish engulfing and evening star patterns observed.
• RSI near 45 suggests moderate momentum, while Bollinger Bands indicate slight volatility contraction.
• Volume spiked during the 00:00–02:00 ET window, but price failed to follow through, indicating potential bearish pressure.
• A key 5-minute support level forms at 13.25, with a 61.8% Fib retracement aligning with the 13.22 level.

Avalanche/Tether (AVAXUSDT) opened at 13.44 on 2025-12-05 at 12:00 ET, reached a high of 13.52, a low of 13.09, and closed at 13.23 at 12:00 ET on 2025-12-06. Total volume was 1,120,742.80, and notional turnover was $14,840,548.60.

Structure & Formations

AVAXUSDT has formed bearish candlestick patterns, including a bearish engulfing pattern at 13.39 and an evening star near the 13.46 high.

A 5-minute support line is forming at 13.25, coinciding with a Fibonacci 61.8% retracement level of the prior bullish swing. The 13.16–13.20 range appears to be consolidating as a potential short-term floor, with 13.34 and 13.39 acting as recent resistance levels that failed to hold.

Moving Averages and Momentum

On the 5-minute chart, price has spent most of the session below the 20- and 50-period moving averages, reinforcing a near-term bearish bias. The 200-period daily MA at ~13.25 has emerged as a key psychological level, with price appearing to struggle to break above it. The MACD histogram has turned negative, with a bearish crossover confirmed, while RSI has settled in the 40–50 range—suggesting neutral to bearish momentum with no signs of oversold conditions.

Volatility and Bollinger Bands

Bollinger Bands have narrowed significantly during the overnight hours, signaling a potential breakout. Price has been trading near the lower band for much of the session, with a brief retest of the upper band during a 13.46 high. This volatility contraction suggests a period of consolidation may end soon, with either a breakout or breakdown likely in the next 24 hours.

Volume and Turnover

Volume spiked dramatically in the 00:00–02:00 ET window, peaking at 267,454.72 AVAX, with a corresponding price dip to 13.15. Despite this, price has failed to sustain above 13.28–13.30, indicating potential selling pressure. Turnover during this period was ~$3.5 million, but it was followed by a sharp price rollback, suggesting distribution rather than accumulation.

Forward-Looking Outlook

AVAXUSDT appears to be in a short-term consolidation phase following a failed bullish attempt near 13.46. A break below 13.20 could trigger further downside toward 13.10–13.05, while a sustained close above 13.34 may re-ignite bullish momentum. Investors should remain cautious about potential short-term volatility and watch for divergences in volume and RSI as early warning signs of a trend reversal.