Red-Hot Avalanche (AVAX) Surges Again Despite These Overbought Warnings

Avalanche’s AVAX token is extending its powerful rally today, rising 8% to trade around $48. This continues AVAX’s strong uptrend across short, medium and long timeframes according to analysis from altFINS.

In their latest trade setup, altFINS notes that AVAX recently broke above the key $35 resistance level to hit their price target of $50. However, the token looked extremely overbought based on its relative strength index (RSI) reading of around 82. The RSI is a momentum indicator that measures the speed and magnitude of recent price changes to determine when an asset may be overbought or oversold. Readings above 70 generally indicate overbought conditions, while below 30 signals oversold.

So while AVAX’s uptrend remains firmly intact, altFINS expects the token may pause or pull back slightly in the short-term as some traders take profits from its parabolic advance. They advise setting price alerts around the $50 resistance and $35 previous resistance now turned support.

Source: altFINS – Start using it today

Beyond momentum, altFINS also analyzes AVAX’s trend direction and support/resistance. The clear uptrend confirms bullish momentum across timeframes. Key levels to watch are the $35 support zone followed by stronger support at $25. On the upside, $50 marks the next resistance target where AVAX tapped today.

What’s Driving Avalanche’s Growth

App developers in decentralized finance (DeFi) are seeking ultra-fast transaction speeds and low fees. While Ethereum is established and secure, it suffers from sluggish and expensive transactions. In the last three months, Ethereum (ETH) gained 38% while faster alternative platforms like Avalanche have soared even higher.

Solana (SOL), Cardano (ADA), Algorand (ALGO) and Avalanche aim to beat Ethereum in speed and capacity. Of these, Solana and Avalanche stand out as top performers capable of handling tremendous transaction volumes. However, Ethereum still dominates in development activity. As DeFi matures, significantly faster and cheaper networks will likely capture more growth.

Transform Hundreds Into Millions With the Magic of Memecoins – think $BONK, but bigger!🤫

The key? Getting in early, especially during the IDO phase. Get in on NuggetRush now! This innovative memecoin blends play-to-earn gaming with real-world gold mining. Join soon to take advantage of the current ICO prices!

Show more +

Monitoring momentum indicators like RSI and trend-following tools like the moving average convergence divergence (MACD) gives traders high probability setups. The MACD measures the relationship between two moving averages to identify shifts in momentum. When the MACD line crosses above the signal line, it signals accelerating upside momentum like seen on AVAX recently. However, the extreme overbought RSI reading suggests a short-term pullback may happen soon.

By combining analysis of momentum, trends and support/resistance, traders can better time entries and take profits. For AVAX, the weekly close will be important to watch if bulls can defend $48. Closing the week above $50 would signal strong momentum to retest highs.

You may also be interested in:

Check NuggetRush ($NUGX)

Sponsored: Invest Responsibly, Do Your Own Research.
Being in its ICO stage, NuggetRush offers a prime opportunity for early investors to get in at potentially lower prices
A unique play-to-earn gaming platform in the memecoin market
The platform combines artisanal and gold mining with cryptocurrencies in an unusual gaming context, offering a distinctive and immersive experience
Fosters a strong community by encouraging physical meetups among members
NFT Integration with Prominent Characters
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

Tags:

Petar Jovanović
Petar Jovanović

As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge. Feel free to connect with me on LinkedIn and let's discuss the exciting world of cryptocurrencies and decentralized technologies!

CaptainAltcoin
Logo