Resistance Reclaim on the 4H Structure

$AVAX broke through the $6.73 resistance level during the current session and is now trading at $6.77, representing a +0.87% move over 24 hours on $153M in volume. This is not a gap or gap-fill scenario - the level was tested multiple times on lower timeframes and rejected, then recovered. The breakout holds significance only if price can sustain above this point during the Asia-to-London session overlap, where lower timeframe volatility typically compresses before London's full entry.

The Path to $6.92: Fibonacci and Structural Confluence

The $6.73 level acted as a hard ceiling across the last four 4H candles. $AVAX's ascent from $6.65 to $6.77 represents a textbook breakout on volume confirmation - the $153M 24h volume is adequate but not exceptional, signaling institutional participation is measured rather than aggressive. The next structural target at $6.92 aligns with the 38.2% Fibonacci retracement of the prior impulsive decline. Traders should monitor whether price approaches $6.92 with momentum intact or stalls and consolidates between $6.73 and $6.85 first. The $6.85 zone is a midpoint that could act as a secondary support if the move encounters profit-taking.

RSI and Momentum Divergence Check

On the 4H chart, RSI entering overbought territory (above 70) as price approached $6.77 is a timing signal, not a reversal guarantee. Overbought conditions persist in strong uptrends and resolve only after consolidation or pullback. If RSI remains elevated while price holds above $6.73, the structure remains intact. A failure to push past $6.85 on the next candle close, paired with RSI rolling over from 70+, would signal a potential retest of $6.73. The MACD histogram should be monitored for histogram compression, which often precedes directional clarity in the London session.

Critical Support and Session Risk