Avalanche Price Eyes Key Resistance Zone as Bullish Momentum Continues
Avalanche (AVAX) has been showing signs of bullish momentum in recent days. On September 2nd, AVAX began a strong reaction after testing the $7 resistance zone at the end of August.
The spot CVD for AVAX has been rising steadily since September 4th, with Open Interest climbing from $145.6 million to $164.9 million. Funding Rates have also been positive, indicating that market participants remain bullish on AVAX.
Aave V4 deposits reaching an all-time high of $19.1 million on Avalanche may have contributed to the price increase. However, the RSI on the daily timeframe is at 66.6, showing strong upward momentum, but the volume trends indicate a relatively even balance between buyer and seller pressure.
The higher timeframe swing structure has been bearish since June, but the recent breakout past $7.1 and retest may be part of a broader downtrend retracement. The next key levels to watch are the Fibonacci retracement levels at $8.65 and $9.46.