Market Overview for Avalanche/Tether (AVAXUSDT)

Summary• Price surged from $16.95 to a high of $17.81, driven by strong bullish momentum.• RSI approached overbought territory, signaling potential for near-term correction.• Elevated volume confirmed the strength of the rally in the final hours.

Avalanche/Tether (AVAXUSDT) opened at $16.95 on 2025-11-08 12:00 ET and reached a high of $17.81 before closing at $17.81 as of 2025-11-09 12:00 ET. The 24-hour candle recorded a total volume of 590,822.62 and a notional turnover of $10,012,351.80. The pair exhibited a clear bullish bias, especially during late morning and early afternoon hours, with volume surging during the final hours of the period.

Structure & Formations

The 15-minute chart reveals a key ascending pattern, with AVAXUSDT forming a series of higher highs and higher lows after bouncing off a critical support level near $16.90. A large bullish engulfing pattern emerged on the candle starting at 14:30 ET, confirming a potential reversal from bearish to bullish sentiment. The price subsequently extended toward $17.81, forming a key resistance cluster near $17.75–$17.85. A notable bearish doji appeared briefly around $17.60, suggesting possible exhaustion in the rally.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages are bullish aligned, with the price consistently above both. On the daily chart, the 50-period MA appears to be rising and crossing above the 100- and 200-period lines, signaling a broader bullish trend. The convergence of these moving averages suggests continuation of the upward bias, though a pullback to test the 50 MA could provide confirmation of strength.

MACD & RSI

The MACD line rose steadily throughout the 24-hour period, crossing above the signal line and indicating strong bullish momentum. However, the RSI closed near 70, signaling overbought conditions. While the pair maintained strong upward bias, the RSI’s position near the 70 threshold suggests traders may need to watch for a short-term pullback or consolidation before further advances.

Bollinger Bands

Volatility expanded significantly as the price approached the upper Bollinger Band, particularly after 14:00 ET. Price traded near or above the band in the final hours, indicating strong momentum but also suggesting a potential overextension. A reversion toward the middle band could serve as a natural area of interest for traders.

Volume & Turnover

Volume and turnover increased sharply during the final four hours of the period, confirming the strength of the price action. The highest volume spike occurred at 14:30 ET when the price surged from $17.53 to $17.81. A divergence between price and volume was observed earlier in the session, when the price moved lower but volume remained relatively weak. This suggests bearish conviction was lacking, reinforcing the bullish bias.

Fibonacci Retracements

On the 15-minute chart, the price found support near the 61.8% Fibonacci level around $17.10 before surging higher. The final rally from $17.53 to $17.81 tested the 23.6% and 38.2% retracements on the way up, with both levels acting as minor points of consolidation. These levels may provide psychological resistance in the near term.

Backtest Hypothesis

The observed RSI behavior aligns with the backtest hypothesis that selling AVAX when RSI exceeds 70 may offer a performance advantage over passive holding. The 24-hour period saw AVAXUSDT reach an RSI near 70, a condition that would trigger a sell signal under the strategy. While this period did not immediately result in a pullback, the overbought condition suggests the pair may be primed for a short-term correction. Historically, the strategy has aimed to mitigate risk during overbought phases, capitalizing on market corrections. Traders following this approach would have exited near the top, positioning for potential volatility or re-entry at improved levels. This method could have helped avoid the risk of a sharp reversal in the near term.