Market Overview for Avalanche/Tether (AVAXUSDT)

Summary
• Price declined from 14.73 to 14.26, forming bearish engulfing and long lower shadows near 14.20–14.26.
• RSI and MACD indicated weakening momentum and oversold conditions below 14.40.
• Volatility surged with a 14.6–14.68 range giving way to a sharp 14.68–14.18 pullback.
• Bollinger Band contraction was evident before the break below the 50-period MA on the 5-min chart.
• Fibonacci retracement levels at 14.44 (38.2%) and 14.28 (61.8%) acted as short-term resistance and support.

Avalanche/Tether (AVAXUSDT) opened at 14.57 on 2025-12-09 at 12:00 ET, reached a high of 14.73, and closed at 14.26 on 2025-12-10 at 12:00 ET, with a 24-hour volume of 2,304,741.12 and turnover of $32,791,225.81.

Structure & Formations

AVAXUSDT formed bearish engulfing patterns and long lower shadows during the downward leg from 14.68 to 14.26, suggesting strong bearish sentiment. Key support levels emerged near 14.20–14.26, where the price found temporary bids, and resistance was observed at 14.40–14.44. A long wick in the 11:45 candle at 14.18 marked a potential short-term floor.

Moving Averages

On the 5-minute chart, the 20-period and 50-period moving averages were both above the closing price at 12:00 ET, reinforcing the bearish bias. The 50-period MA on the daily chart stood near 14.45–14.50, with the price currently below, indicating a potential test of that level in the coming session.

MACD & RSI

The RSI dropped below 30 toward the close, signaling oversold conditions but also highlighting the risk of a bounce. The MACD line crossed below the signal line in the morning session, confirming the bearish shift. While the negative divergence in momentum could support further downward movement, a reversal is possible if buyers gather strength near 14.20.

Bollinger Bands

Bollinger Bands contracted during the early hours of the session, reaching a narrow range of 14.56–14.63 before a sharp break lower. The price then moved below the lower band, reaching 14.18, a sign of increased volatility and bearish control. The widening of the bands post-contraction suggests elevated risk ahead.

Volume & Turnover

Volume surged during the sharp drop between 10:45 and 11:45, especially in the 10:45 candle where 100,466.02 AVAX changed hands. Turnover aligned with the price action, showing a clear bearish confirmation. However, the drop in turnover during the last 30 minutes may indicate waning bearish conviction, raising the possibility of a short-term rebound.

Fibonacci Retracements

Fibonacci levels derived from the 14.18–14.68 swing showed 38.2% at 14.44 and 61.8% at 14.28. Price briefly bounced at 14.28 before moving lower, suggesting the level acted as a temporary floor. A retest of these levels may be expected in the next 24 hours.

A potential rebound from 14.20–14.26 could test the 14.30–14.35 range, where short-term buyers may step in. However, the overall bias remains bearish unless a strong reversal pattern forms with increasing volume. Investors should remain cautious of further downside risk in the near term.