Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be taken as funding recommendation
Following a 4-week lengthy down-channel that lasted between September to October, Avalanche continued to hunt aggressively for newer value ranges in November. The previous week has now accounted for 2 rallies, with a brand new ATH set above $81.
Whereas AVAX goals to keep up its progress heading into December, its value may take a near-term hit earlier than the subsequent upcycle. This stemmed from overbought readings on the RSI and a doable bearish twin peak on the Superior Oscillator.
On the time of writing, AVAX was buying and selling at $83.5, up by 9.4% during the last 24 hours.
AVAX 4-hour Chart
Supply: AVAX/USD, TradingView
AVAX’s sturdy begin to November has set its value on the right track in the direction of $100. A 35% pickup from $60 pumped AVAX to brisker data and an 11% correction adopted thereafter. The Fibonacci Extension device was plotted alongside this rally to determine sure near-term targets.
Now that AVAX has tagged the 61.8% Fibonacci Extension stage, an overbought RSI and a possible bearish twin peak on the Superior Oscillator may set off the subsequent spherical of corrections.
In case AVAX fails to register a decisive shut above $85, bearish strain may drag the worth again in the direction of the 38.2% Fibonacci stage over the approaching classes. Ought to a deeper correction happen across the $73.6 help, a double backside may present an impetus for the subsequent wave upwards.
Reasoning
Now, AVAX’s 4-hour RSI noticed a bearish divergence together with overbought readings, throwing weight behind a doable drawdown.
Ought to Superior Oscillator’s present peak fail to greatest its earlier month-to-month milestone, a bearish twin peak would additionally come to mild. Whereas such alerts would invite promoting strain, the general uptrend was preserved on the Directional Motion Index which was but to discourage from its bullish place.
Conclusion
Earlier than AVAX assessments its 100% Fibonacci Extension and paves approach in the direction of $100, a near-term correction ought to be on the playing cards. Therefore, the main focus might be on help areas of $80 and $73.3 going ahead.
