Resistance Reclaimed in the Asia-London Overlap

$AVAX traded through its nearest resistance zone at $6.68 on the 4-hour timeframe and held above that level, rallying to $6.71 by the current session. The 24-hour volume of $291M signals participation, though not yet institutional strength. This breakout matters because $6.68 had been a friction point - price tested it multiple times without conviction before finally breaking through.

The move represents a shift from consolidation into directional momentum. What's critical here is that price didn't just touch and retreat - it closed above the level with follow-through buying, which is the mechanical difference between a failed breakout and a genuine structural break.

Structure Between $6.71 and $7.04

The next material resistance sits at $7.04, approximately 5% above the current price. This level represents the next confluence of supply in the structure - likely a previous swing high or a Fibonacci extension of the prior corrective move. Between here and there, traders should monitor $6.85 to $6.90 as an intermediate zone where profit-taking or consolidation could emerge.

On the downside, the $6.68 level that was just broken is now the critical floor. If price returns to $6.68 and fails to hold it on a retest, the breakout is invalidated and traders would need to assess whether a lower support (likely around $6.40 to $6.50) becomes the next zone of interest. The distance between $6.71 and $6.68 is only 0.4%, so a tight stop structure is required if trading this breakout.

Fibonacci extension levels from the prior swing also align near $7.04, which increases the probability that this level acts as real resistance - not just a round number.

RSI and Momentum Context

A breakout above consolidation typically arrives with momentum indicators in overbought or rising territory. While exact RSI and MACD readings depend on the precise candle timing, the 6.13% 24-hour gain suggests momentum has already accelerated into this move. The risk is that quick rallies on lower volume can stall at the next resistance, especially if RSI has extended too far into the 70+ zone without pullback.