Avalanche's AVAX token is pushing toward $8.65 after clearing the $7 resistance zone in early September, backed by rising open interest and positive funding rates. But the rally sits inside a swing structure that has stayed bearish since June, so traders are watching whether the $7.1 support level holds before treating the move as more than a retracement.
AVAX retested the $7 former resistance zone toward the end of August, then broke into a bullish reaction on September 2 that carried the token toward $8, even as Bitcoin fell below $80,000 in the same stretch. The token's advance has continued despite that broader weakness in Bitcoin.
Open interest and funding point to bullish positioning
Since September 4, the spot cumulative volume delta for AVAX has been rising slowly, and open interest climbed from $145.6 million to $164.9 million, according to Coinalyze data. Funding rates stayed positive over the same period, showing traders remained positioned for further gains.
The move also coincided with Aave V4 deposits on Avalanche reaching an all-time high of $19.1 million, a factor that likely supported the price trend.
Momentum indicators split on direction
The daily RSI sits at 66.6, pointing to strong upward momentum, but the on-balance volume shows no decisive trend, oscillating around the July highs without a clear breakout. Buyer and seller volume has stayed roughly matched too, which tempers the case for continued price gains.
The higher timeframe swing structure has stayed bearish since June, with consolidation around $6.5 and the more recent breakout past $7.1 and retest treated as part of that broader downtrend. On this reading, the current move is a retracement that could extend toward the $8.65 and $9.46 Fibonacci retracement levels.
The $7.1 level is the line traders are watching
On the 4-hour chart, the $6.31 and $7.11 support levels keep the swing and internal structure bullish, and the $7.4 level marks a local higher low that signals a short-term uptrend. A breakout past the $8.1 supply zone would strengthen the case for a rally toward $8.65 and $9.46. Swing traders can hold their bullish bias as long as the $7.1 support level continues to hold.
Source: AMBCrypto
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