Avalanche (AVAX) – Gone parabolic this weekPosted on Sunday, November 21 2021 at 8:51 pm GMT+0000
Avalanche (AVAX) has gone wild lately, cracking one record high after another. It has gone parabolic this week, distancing itself well beyond the regression channel pulled from June lows.
Momentum oscillators are completely overwhelmed. The RSI is flirting with the 80 level well beyond the overbought threshold and the MACD skyrocketed. Both showing no signs of relief yet.
Since the rally had been overextended as suggested by almost every metric, bulls could be taking a breather having overstepped the 261.8% Fibonacci extension level of the 81 – 48.17 down leg and after hitting the 150 psychological level. If they manage to push beyond the latter, new battles can be fought around the 160 and 170 levels ahead of the 423.6% Fibonacci level of 187.22.
Bearish corrections can’t be ruled in such an environment. So, if technical exhaustion kicks in and the price retraces lower, the upper line of the channel seen around 115 could be the first major support provider. A bit lower, the November 8th high of 100.35 would come into the radar ahead of the September 23rd high of 81. However, a drop below the November 10th low of 76.74 could dampen the current bullish structure and open the door towards a retest of the channel’s lower border.