- Avalanche (AVAX) has jumped over 18%, trading at $11.
- The double-positive alignment confirms strong buying pressure.
Avalanche (AVAX) trades near the $11.35 level, marking an increase of over 18.6%. Trading volume sits at $1.428 billion, with a 24-hour price spectrum spanning from $9.56 to $11.78. Meanwhile, the seven-day spectrum ranges from $7.18 to $11.78. Moving past $12 sets $15 as the subsequent target, and the broader bullish configuration remains intact provided the present support holds.
Three key developments powered this upward movement: New York Life Investment Management introduced its inaugural tokenized high-yield bond fund on Avalanche, Paxos integrated AVAX into its regulated payment offerings, and an upcoming network update on September 22 is set to reduce staking lock-up durations from 14 days to 48 hours.
An examination of the four-hour chart reveals that the ongoing upward trend could encounter primary resistance around the $11.77 threshold. Sustained buying pressure might spark a golden cross, lifting the price to $12.10 or higher.
Conversely, a bearish reversal could immediately drag the price downward to test the nearby support at $10. A persistent downward correction might provoke a death cross, allowing bears to drive the Avalanche price below the $10.61 mark.
Can Avalanche’s Momentum Carry Forward Higher?
Technical indicators demonstrate that the Moving Average Convergence Divergence line and the signal line sit above the zero line, reflecting a robust macro uptrend. Within this established trend, short-term bullish momentum is gathering speed. This double-positive configuration validates the intense buying pressure.
Such action indicates that buyers retain firm command, continually pushing the Avalanche price upward and providing traders with a high-probability buy signal. Nevertheless, because both lines remain elevated past zero, keeping an eye out for overbought conditions that might signal short-term momentum fatigue remains crucial.
Furthermore, a daily Relative Strength Index (RSI) reading of 75.31 places the token within overbought territory, showing that heavy buying activity has driven the price higher recently while simultaneously offering a distinct warning that the rally is becoming short-term overextended.
This serves as a prompt to proceed carefully when initiating new long positions. Although assets can stay overbought during powerful and sustained rallies, this reading elevates the likelihood of an upcoming pullback or exhaustion as buyers pause to absorb their profits.
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