Market Overview for Avalanche/Tether (AVAXUSDT)

Generated by AI AgentAinvest Crypto Technical RadarReviewed byAInvest News Editorial Team
Wednesday, Jan 7, 2026 12:42 pm ET1min read
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Aime RobotAime Summary

- AVAXUSDT formed a bullish engulfing pattern at $14.30 before a sharp 4-hour drop to $14.21, confirmed by bearish RSI divergence and surging volume over 123k

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- Bollinger Bands expanded sharply post-14:00 ET, reflecting heightened volatility as price fell below lower bands during the session's worst 2 hours.

- Fibonacci levels indicate critical support at $14.0 (61.8%) and resistance near $14.35, with MACD bearish crossover and 20SMA/50SMA death cross reinforcing downtrend momentum.

- Market faces 24-hour test of $14.0 support, with potential for deeper pullback if sellers maintain control amid high volatility and $22.5M notional turnover.

Summary
• Price formed a bullish engulfing pattern near $14.30 before a sharp 4-hour decline to $14.21.
• RSI signaled overbought levels earlier, now showing bearish divergence with price.
• Volume surged to over 123k during the sell-off, confirming downward momentum.
• Bollinger Bands expanded sharply post 14:00 ET, indicating increased volatility.
• Fibonacci levels suggest potential support at $14.0 and resistance near $14.35.

24-Hour Price and Volume Summary


Avalanche/Tether (AVAXUSDT) opened at $14.47 on 2026-01-06 12:00 ET, reached a high of $14.75, and closed at $14.49 on 2026-01-07 12:00 ET, with a low of $13.95. Total volume traded was 1,559,123.79
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, while notional turnover amounted to $22,482,486.30.

Structure and Formations


Price formed a bullish engulfing pattern at $14.30, but momentum failed to hold, leading to a sharp 4-hour decline to $14.21. A long bearish candle at 14:15 ET, with a wide range of $0.17, signaled exhaustion near $14.30. A doji at $14.56 suggests indecision earlier in the session, while the decline from $14.75 to $13.95 saw multiple rejection levels at 14.30, 14.0, and 13.95.

Moving Averages and Momentum

The 5-minute 20SMA dipped below the 50SMA during the sell-off, confirming bearish momentum. Daily moving averages (50, 100, 200) remain neutral, with no strong directional bias. RSI peaked above 70 in the morning before trending downward, showing bearish divergence. MACD crossed below the signal line, signaling a potential continuation of the downtrend.

Volatility and Bollinger Bands


Bollinger Bands expanded significantly after 14:00 ET as volatility increased, with price moving outside the lower band during the session’s worst 2 hours. This suggests increased fear in the market. The expansion also reflects a period of high turnover and rapid price swings.

Volume and Turnover Divergences


Volume surged during the 4-hour breakdown to $14.21, with over 123k AVAX traded. Turnover spiked to over $1.75M in that period, confirming the move. However, volume waned as price approached $14.00, suggesting potential support. A divergence between declining prices and lower volume may indicate a short-term pause in the fall.

Fibonacci Retracements


Fibonacci levels drawn from the recent $14.30 to $14.75 move show a key support at 61.8% at $14.30 and resistance at 38.2% at $14.53. Daily retracements from the $14.75 high to the $13.95 low suggest strong support at $14.0 (61.8%) and possible resistance at $14.45 (38.2%).

Forward Outlook and Risk Note

AVAXUSDT may test the $14.0 support area in the next 24 hours if sellers remain in control. A failure to hold above $14.0 could trigger a deeper pullback. Investors should also watch for a potential bounce from key Fibonacci and Bollinger Band levels. As always, volatility and volume shifts could surprise market expectations.