Avalanche (AVAX) Breaks Out of Box Range, Reclaims $10...Will It Surge Past 75 Overheating?

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Avalanche (AVAX) has broken out of a months-long sideways trend (box range) and reclaimed the $10 mark. It showed a strong technical rebound, surpassing long-term moving averages and multiple resistance lines at once. However, as short-term overheating signals became clear, whether the $10 support line can be firmly established has emerged as a test for further upside.

According to cryptocurrency media outlet U.Today on September 21 (local time), Avalanche surged to approximately $10.27 after escaping a long consolidation range between $7 and $8.2. This rise is significant not just as a simple price rebound, but because it successively broke through key resistance levels. Avalanche quickly cleared not only the long-term moving average around $8.5 to $8.7 but also short- and medium-term moving averages, stepping back onto the psychological $10 price point.

During the breakout, trading volume surged, leading to an assessment that it achieved higher reliability compared to past technical rebound attempts. However, as the near-vertical surge continued, signs of short-term overheating were also detected. The Relative Strength Index (RSI) exceeded 75, entering an overbought phase, and recent candles showed a pullback after peaking at around $10.83.

In a situation where a breather is inevitable after a short-term surge, maintaining the $10 level is considered the primary line of defense. If $10 breaks, the lower range of the breakout candle, $9.4 to $9.5, will act as the next support level. Even if a deeper correction occurs, the diagnosis is that the macro trend reversal remains valid as long as the key breakout zone of $8.5 to $8.7 is maintained.

Whether the upward resistance is broken through is also noteworthy. The media predicts that if Avalanche surpasses the $10.8 to $11 range with strong trading volume, further breakout will be confirmed, significantly alleviating upward selling pressure. Whether $10 can be firmly established is expected to be a short-term turning point that will determine the next breakthrough to $11.

[Article Summary]

-Avalanche (AVAX) broke out of its $7 to $8.2 consolidation range and rose to $10.27, marking its largest rebound in several months.

-Trading volume surged after surpassing the long-term moving average ($8.5-$8.7), but the Relative Strength Index (RSI) exceeded 75, entering a short-term overheated zone.

-Analysis suggests that further upward trajectory requires maintaining the primary support level of $10 and breaking past the $10.8-$11 resistance line.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*