‎Avalanche (AVAX) Maintains Bullish Momentum Despite Overbought Signals

‎AVAXUSD Market Analysis- September 20

‎Avalanche (AVAX) has recently confirmed a strong bullish reversal, showing resilience in its price action despite indicators hinting at short-term exhaustion.

‎AVAXUSD Key Levels

‎Support Levels: $32.00, $18.70
‎Resistance Levels: $45.00, $55.60

‎AVAXUSD Long-Term Trend: Bullish

‎Avalanche has entered a decisive bullish phase after forming a failed low and breaking structure to the upside on the daily timeframe. This bullish break of structure fueled a strong upward surge, allowing price to reclaim the $32.50 demand level.
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‎At present, the Relative Strength Index (RSI) on the daily chart shows that price has entered the overbought zone. While this typically signals the likelihood of a bearish move, in this case, it is more likely to manifest as a corrective retracement rather than a full reversal. The bullish trend line support remains intact, and any retracement is expected to respect this structure, reinforcing the continuation of the upward trend.
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‎Currently, no clear bearish shift has been confirmed on the daily structure. For retracement to take place, price will need to display signs of bearish structure such as consolidation or a shift in momentum before resuming its bullish trajectory.

‎AVAXUSD Medium-Term Trend: Bullish

‎On the 4-hour chart, price action reinforces the bullish outlook. AVAX has successfully broken through the $32.50 level, signaling strong buyer interest and momentum.
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‎However, the 4-hour RSI also reflects overbought conditions, echoing the daily timeframe. Early signs of bearish candle formations are appearing, but a clear bearish structure has yet to materialize. A short-term retracement is anticipated, aligning with the daily trend, before the market resumes its broader bullish move.
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