- Avalanche (AVAX) has jumped over 18%, trading at $11.
- The double-positive alignment confirms strong buying pressure.
Avalanche (AVAX) is trading around the $11.35 mark, registering a gain of over 18.6%. The volume is at $1.428 billion across a 24-hour range of $9.56 to $11.78. Moreover, the seven-day trading range is between $7.18 and $11.78. A break above $12 brings the next target to $15. The broader bullish structure holds as long as current support does.
Three things drove the momentum. New York Life Investment Management launched its first tokenised high-yield bond fund on Avalanche. Paxos added AVAX to its regulated payment services. And a network upgrade scheduled for September 22 will cut staking lock-up periods from 14 days down to 48 hours.
While zooming in on the four-hour trading chart, the current bullish trajectory could see the Avalanche price find the key resistance at the $11.77 range. The continued upside pressure might potentially trigger the emergence of the golden cross, sending the price toward $12.10 or even higher.
On the contrary, a bearish reversal of the asset might instantly pull the price movement down and test the nearby $10 support. A steady downside correction could initiate the death cross to take place, and eventually the bears would push the Avalanche price to a lower target, below the $10.61 level.
Can Avalanche’s Momentum Carry Forward Higher?
The technical analysis shows that the Moving Average Convergence Divergence line and the signal line are above the zero line, trading in a strong macro uptrend. The short-term bullish momentum is accelerating within that existing uptrend. This double-positive alignment confirms strong buying pressure.
It shows that buyers remain in firm control and continue to drive Avalanche price higher. Traders see this as a high-probability buy signal. However, as both lines are elevated above zero, it is also essential to watch for overbought conditions that could hint at short-term momentum fatigue.
Besides, the daily Relative Strength Index (RSI) value resting at 75.31 places the asset in overbought territory. This indicates that strong buying momentum has pushed the price higher over recent sessions. However, it gives a clear warning that the move is becoming short-term overextended.
It is a signal to exercise caution when opening new long positions. While assets can remain overbought during powerful, sustained rallies, this level increases the probability of an impending pullback or momentum exhaustion as buyers pause to digest gains.
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