Bollinger Bands Hint Big Move Ahead

 Key Insights:

• Bollinger Bands show nearly 40% width, signaling strong volatility after AVAX’s recent September rally.
• $26.87 acts as a critical support zone, aligning with the 0.886 Fibonacci retracement level.
• RSI near 40 suggests bearish momentum, but oversold signals may spark a potential short-term rebound.

Avalanche (AVAX) was trading at $27.15, down more than 10% in the past 24 hours and nearly 21% over the past week. The Bollinger Bands on the daily chart show the token moving near the 20-day simple moving average (SMA20) at $30.31. The upper band is set at $36.32, and the lower band is at $24.31.

Ripple Bull Winkle, a crypto researcher, noted that the bands are currently wide at nearly 40% of mid-price, reflecting high volatility. He explained, “Price is hovering around the mid-band (SMA20) → neutral balance between buyers and sellers.” Wide bands typically indicate turbulent conditions, often following sharp directional moves.

Breakout or Breakdown Scenarios

The current setup shows price balancing around the mid-band after a strong September rally and subsequent pullback. A confirmed breakout above the upper band with rising volume could mark the start of a new bullish phase. In contrast, a breakdown below the lower band would suggest bearish continuation.

Ripple Bull Winkle added that the next move depends on market conditions: “If bands keep tightening, expect a sharp expansion move soon.” Traders are watching closely to see if the token shifts into a new phase of volatility after the consolidation.

Key Support Zone at $26.87

Analyst Pelin Ay pointed to $26.87 as a crucial support level. On the 4-hour chart, this level lines up with the 0.886 Fibonacci retracement, making it a zone where buying interest may appear. She described it as a “liquidation accumulation zone,” signaling the potential for sellers to exhaust and buyers to enter.