Market Overview: Avalanche/Tether (AVAXUSDT) 24-Hour Analysis

Summary
• Price fell from $16.90 to $15.85 amid bearish momentum.
• RSI and MACD signaled overbought conditions turned oversold.
• Volume and turnover spiked during key breakdowns and reversals.
• Bollinger Bands showed a volatile expansion with price near the lower band.
• Key support tested at $16.20 and $15.80, with a bearish engulfing pattern evident.

Avalanche/Tether (AVAXUSDT) opened at $16.88 (12:00 ET – 1), reached a high of $16.90, a low of $15.61, and closed at $15.68 (12:00 ET) over the past 24 hours. Total volume was 1.92 million units, with a notional turnover of $30.85 million. The pair experienced a significant bearish shift after testing key resistance and forming a bearish engulfing pattern.

The 15-minute chart shows AVAXUSDT breaking below a key ascending channel, with candlestick formations indicating strong bearish sentiment. A bearish engulfing pattern formed around $16.65–16.70, signaling a shift in momentum. Key support levels identified include $16.20 and $15.80, with the latter holding amid a volatile breakdown. Resistance levels at $16.80 and $16.95 appear to have failed after repeated rejections.

MACD showed a bearish crossover with a negative divergence in the later part of the session, while RSI dropped into oversold territory below 30, indicating potential for a short-term bounce. Bollinger Bands expanded during the sell-off, with price staying near the lower band. A 20-period EMA crossed below the 50-period EMA, reinforcing the bearish bias on shorter timeframes.

Volume and turnover increased during the breakdown below $16.60, with no significant divergences observed. The largest single-volume candle occurred at $16.60–16.65, contributing to a sharp drop. Turnover spiked during the 05:00–05:30 ET and 14:00–15:00 ET periods as bearish momentum took hold.

Fibonacci retracements drawn from the $15.61 low to the $16.90 high show key levels at $16.54 (23.6%), $16.38 (38.2%), and $16.14 (50%). Price is currently testing the 50% level, which could see further consolidation or a deeper correction if bearish sentiment persists.

The backtest hypothesis aligns with the technical indicators discussed, particularly the bearish engulfing pattern and the MACD crossover. The strategy aims to validate the continuation of the bearish bias post-breakout and assess the effectiveness of Fibonacci levels as dynamic support zones.