AVAX Keeps Defying Gravity, But What Goes Up Must Come Down
AVAX has definitely been outperforming the rest of the crypto market. But, can it defy gravity? And, how much does gravity even matter on the moon?
Covered:
- AVAX Blasts To New All-Time Highs
- How To Spot A Top
- Massive Bearish Divergence On The RSI
- Closing Thoughts
AVAX Blasts To New All-Time Highs
There is no doubt that Avalanche (ticker symbol: AVAX) has been exploding lately, while many other crypto projects have struggled. On November 8th, AVAX blasted past the $100 USD mark to come to a peak of $151.75 earlier today.
However, there are numerous signs that things are overheated and that the price will need to cool off before it pushes any higher.
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How To Spot A Top
At the time of writing, we can see the past two daily candles have stalled out at approximately the same spot. Both with bearish wicks to the upside, showing that prices above $150 are facing rejection.
Having moved up so quickly over the past week, the price also finds itself well extended off of the 20 and 50 Day Simple Moving Averages. The price of a stock, or in this case a cryptocurrency, will always seek to converge with these moving averages. This can happen in either one of two ways.
AVAX price will either have to start moving sideways at some point in some sort of consolidation, or flag pattern, as the moving averages move up to meet the price, or the price will drop down to meet them.
Massive Bearish Divergence On The RSI
On August 24th, the Relative Strength Index (RSI) of AVAX topped out at a whopping 96.8. While this current price action has sent the price to much higher levels than since then, the RSI is currently only sitting at 80.4.
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This discrepancy is known as “Bearish Divergence.” If the price continues to push higher, the level on the RSI could push higher too. But right now, this is just another warning sign that it might be topping out.
AVAX: Closing Thoughts
What I am saying here is not guaranteed. Volume is still looking pretty good, and there is potential for the price to push higher. However, at this point, the higher it goes the more likely a pullback for AVAX becomes.
And the bigger they are, the harder they fall.
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The post AVAX Keeps Defying Gravity, But What Goes Up Must Come Down appeared first on CryptosRus.
Text source: CryptosRus
