Following a 4-week down-channel from September to October, Avalanche continued to aggressively hunt for newer price levels in November. Two rallies have occurred in the last week, with a new ATH set above $81.
While AVAX hopes to keep its momentum going into December, its price may take a hit before the next upcycle. This was due to overbought RSI readings and a possible bearish twin peak on the Awesome Oscillator.
AVAX was trading at $83.5 at the time of writing, up 9.4 percent in the previous 24 hours.
AVAX’s strong start to November has pushed its price toward $100. A 35% increase from $60 pushed AVAX to newer records, followed by an 11 percent correction. The Fibonacci Extension tool was used to identify specific near-term targets along this rally.
With AVAX having reached the 61.8 percent Fibonacci Extension level, an overbought RSI and a potential bearish twin peak on the Awesome Oscillator could set off the next round of corrections.
If AVAX fails to close decisively above $85, bearish pressure could push the price back towards the 38.2% Fibonacci level in the coming sessions. If there is a deeper correction around the $73.6 support level, a double bottom could provide impetus for the next wave upwards.
Now, AVAX’s 4-hour RSI has detected a bearish divergence along with overbought readings, implying a possible drawdown.
If the Awesome Oscillator’s current peak fails to outperform its previous monthly milestone, a bearish twin peak will emerge. While such signals would normally invite selling pressure, the overall uptrend on the Directional Movement Index remained intact, with the index remaining bullish.
Before AVAX reaches its 100 percent Fibonacci Extension and paves the way to $100, a short-term correction is likely. As a result, the emphasis will shift to support levels of $80 and $73.3 in the coming months.