$AVAX / USDT Faces Bearish Signals: Double Top Pattern and Divergences Warn of Potential Downside in September 2025

The #Avalanche (AVAX) ecosystem has been making waves with its explosive on-chain activity, but the AVAX / USDT trading pair is flashing critical warning signs on the charts as of September 2, 2025. Currently priced at approximately $33.45 (down 2.17% daily), #AVAX has formed a double top pattern, a classic bearish setup, accompanied by bearish divergences across multiple technical indicators: Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Stochastic RSI. This rare alignment heightens the risk of a significant downward move unless bullish momentum intervenes swiftly. Below, we analyze the technical setup, Avalanche’s broader market context, key levels to watch, and actionable trading strategies for navigating this volatile landscape in September 2025.

Technical Breakdown: Double Top and Bearish Divergences

The AVAX / USDT chart is signaling caution with a double top pattern, a bearish formation characterized by two peaks at a similar price level, indicating strong resistance and potential exhaustion of buying pressure. This pattern emerged around the $38.50-$39.00 zone in late August 2025, with AVAX failing to break through despite multiple attempts. The subsequent pullback to $33.45 underscores weakening momentum, amplified by bearish divergences across key oscillators.

#RSI Divergence: The Relative Strength Index, currently at 48.6, shows a lower high while AVAX formed a higher high in price during the second peak of the double top. This divergence suggests declining bullish momentum, a classic precursor to reversals. RSI’s neutral position leaves room for further downside, especially if it drops below 40.

MACD Divergence: The #MACD line remains below the signal line, with the histogram printing negative bars. During the double top formation, the MACD formed lower highs despite higher price peaks, reinforcing bearish pressure...

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