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Avalanche (AVAX) in 'overbought' zone after 100% gains in a week — Correction ahead?

Published 08/19/2021, 01:01 PM
Updated 08/19/2021, 07:40 PM
Avalanche (AVAX) in 'overbought' zone after 100% gains in a week — Correction ahead?
AVAX/USD
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The Avalanche blockchain platform's native asset, AVAX, fell on Aug. 19 as traders decided to secure their profits from its 100% upside move.

The AVAX/USD exchange rate plunged more than 16% after hitting a three-month high of $36.64, putting the brakes on a seven-day upside boom that saw its price rise by 111%. It appears that traders felt uneasy about entering AVAX markets near $36 because of its historical reference as a sell-off level, capping AVAX's previous recovery attempts from March to May.

Avalanche (AVAX/USD) daily price chart. Source: TradingView
AVAX momentum indicators alert overbought risks. Source: TradingView

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