AVAX/USD: Nervous Selling Pressure is Hitting Avalanche Also

Robert Petrucci

AVAX/USD is trading near important support as selling pressure has mounted in Avalanche as it has correlated to broad market sentiment.

AVAX/USD is trading near 86.5000 with fast changes in value as nervous trading is affecting the cryptocurrency. Avalanche was certainly able to create a rather strong amount of positive sentiment in November and December of 2021, as it enjoyed its status as an up and comer in the cryptocurrency and blockchain landscape. However, since the 22nd of December when AVAX/USD was trading near the 127.50 level, Avalanche has suffered a serious erosion of value.

Current support near the 83.0000 to 81.0000 should be monitored closely by traders as sensitive ratios. AVAX/USD was able to take advantage of the rather optimistic wave of buying which helped bring the cryptocurrency to the forefront of blockchain the past couple of months and created a ranking near number 11 per its market capitalization. However, the past couple of weeks show that AVAX/USD is susceptible to nervous selling like its major counterparts.

Optimistic traders of AVAX/USD may believe it has been oversold and that the 83.0000 to 81.0000 will offer a solid launching ground to pursue higher values with long positions. However the trend in the broad market has been harsh and until it shows genuine signs of reversals, all cryptocurrency including AVAX/USD should be looked at with suspicion. Perhaps cautious optimists of Avalanche may want to consider waiting for momentum to break the 91.0000 value first in order to pursue a potential bullish run.

AVAX/USD does move fast and traders should use entry level orders to place their positions to make sure they are not given a fill that is wildly different than their expectations. Even though AVAX/USD is one of the top ranked cryptocurrencies it is not immune to rapid volatility, risk management is essential and trading targets should remain realistic.

Short term traders may want to aim for nearby support and resistance levels as the broad cryptocurrency market continues to struggle to achieve a solid reversal higher. The trend lower in AVAX/USD may continue to correlate with its major counterparts. Selling AVAX/USD and targeting the 84.0000 mark as a take profit for selling positions may prove worthwhile for traders who enter the market on slight moves higher. The current range of AVAX/USD between 80.0000 and 90.0000 will likely prove important in the short term. If the lower marks are challenged, this could signal more selling is on the way.

Avalanche Short Term Outlook:

Current Resistance: 89.5600

Current Support: 82.3000

High Target: 94.8700

Low Target: 77.9000

Avalanche chart

Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

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