Avalanche (AVAX) Faces Possible Short-Term Correction Amid Bearish RSI Divergence, Institutional Adoption Grows


  • AVAX recently tested the critical $27 neckline resistance before pulling back to $25.

  • A bearish RSI divergence signals potential short-term momentum weakening.

  • The 20-day EMA is acting as key support, maintaining the overall bullish trend.

Avalanche (AVAX) faces short-term correction amid bearish RSI divergence but maintains a bullish uptrend supported by institutional real-world asset adoption. Stay informed with COINOTAG.

What is Causing Avalanche’s Short-Term Price Correction?

Avalanche’s short-term correction is driven by a bearish RSI divergence on the daily chart, indicating weakening momentum despite price reaching a higher high. AVAX tested the $27 neckline resistance but pulled back to $25 after failing to sustain upward pressure. The RSI’s lower high compared to the price’s higher high signals that bullish strength is fading temporarily.

How Does the EMA/SMA Crossover Affect Avalanche’s Trend?

The 20-day EMA recently crossed above the 50-day SMA, creating a bullish crossover that supports the broader uptrend. This technical indicator suggests that despite the current pullback, AVAX’s price trend remains positive. The 20-day EMA also acted as a strong support level during the recent dip to $22.50, reinforcing its role in maintaining price stability.

Why is Institutional Adoption Important for Avalanche’s Growth?

Institutional interest is a key driver behind Avalanche’s sustained growth. Grove Finance’s announcement to deploy $250 million in real-world assets on Avalanche’s Layer 1 network highlights increasing confidence from institutional players. Alongside existing tokenized assets like BlackRock’s BUIDL and Franklin Templeton’s BENJI, Avalanche is solidifying its position as a leading platform for real-world asset tokenization.

Metric Value Comparison
AVAX Price Resistance $27 Tested, then pulled back
RSI Divergence Bearish Momentum weakening
Institutional RWA Deployment $250 million Grove Finance on Avalanche

Frequently Asked Questions

What is the significance of the bearish RSI divergence for AVAX?

The bearish RSI divergence indicates that while AVAX price reached a new high, the momentum behind the move is weakening, suggesting a possible short-term price correction.

How does institutional adoption impact Avalanche’s network?

Institutional adoption increases network credibility and liquidity by bringing significant real-world assets onto Avalanche, which supports long-term growth and tokenization use cases.


Key Takeaways

  • Short-term correction: Bearish RSI divergence suggests AVAX may pull back from recent highs.
  • Strong support levels: The 20-day EMA provides a critical support zone during price dips.
  • Institutional growth: Grove Finance’s $250 million RWA deployment reinforces Avalanche’s Layer 1 adoption.

Conclusion

Avalanche’s AVAX token is currently undergoing a short-term price correction due to bearish RSI divergence, but the overall bullish trend remains supported by a strong EMA/SMA crossover and increasing institutional adoption of real-world assets. These factors position Avalanche for sustained growth, making it a key player in the Layer 1 blockchain space. Monitoring price action near support levels will be crucial for identifying the next upward move.

Could this be Avalanche’s buy-the-dip moment? - 1
Source: TradingView

BREAKING NEWS

Solana SOL to Bitcoin: Jump Crypto Converts 1.1 Million SOL to 2,455 BTC, Transfers to Galaxy Digital

According to Lookonchain data dated October 31, Jump Crypto...

Bitcoin Whale With 14-Game Win Streak Holds $3.62B in Longs Across BTC, ETH, SOL Amid $11.4M Unrealized Losses

COINOTAG News, October 31, as tracked by HyperInsight, flags...

Bitcoin (BTC-USD) Leads $1.134 Billion in 24-Hour Liquidations, Hyperliquid Records $21.43 Million Largest BTC-USD Hit

According to Coinglass data published on October 30, global...

Nordea to Offer Bitcoin-Backed ETP via CoinShares on Platform, Launching December 2025

Nordea Bank will broaden its crypto offering by introducing...

Smart Money Goes 25x Long on Ethereum After 10/11 Flash Crash, Holding 19,383.25 ETH (~$73.3M)

According to COINOTAG News and market data dated October...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img