AVAX/USD: Important Long-Term Support Seen and Causing Worry

Robert Petrucci

AVAX/USD was able to climb to short-term highs on Wednesday, but today’s price action has again seen selling become highlighted.

As of this writing, AVAX/USD is hovering over the 63.0000 ratio and is within sight of troubling long-term support which can be seen when looking at prices from the last week of October 2021. Although Avalanche was able to gain yesterday, AVAX/USD was not able to sustain its momentum upwards and this has correlated to the broad cryptocurrency market.

Volatility remains a strong flavor within AVAX/USD and traders need to use their risk-taking tactics at all times to guard against sudden strong moves. On the 12th of October in 2021, AVAX/USD was trading within sight of the 51.0000 ratio, Avalanche than staged a strong move upwards and nearly touched the 148.0000 juncture on the 21st of November. The ability to gain such a substantial amount of money within slightly more than one month is attractive to speculators, but it should also serve as a strong warning about the danger of moves which can cause havoc if the wrong direction is chosen.

AVAX/USD may appear overbought to many speculators given its higher price values seen slightly more than two months ago, but timing a reversal higher may prove to be difficult. Short-term traders should keep their eyes on support near the 62.7500 mark, if this value proves vulnerable and the 62.0000 and 61.0000 levels begin to be flirted with then technical traders may believe AVAX/USD could challenge lower prices seen this past weekend and early this week. Only two days ago Avalanche was trading near 55 USD.

AVAX/USD has shown a tendency to trade in step with the broad cryptocurrency market. If nervous sentiment remains the dominating theme, traders can certainly look for upside price action as speculative short-term wagers to seek momentary reversal higher for quick hitting trades. But traders looking for upside action should be fast and cash in results under the present conditions.

Until important resistance levels are broken higher like the 75.0000 and 76.0000 values above and sustained, bearish traders may remain skeptical. Sellers of AVAX/USD may continue to look at short-term upside action as a way to actually ignite short positions. The near term will likely remain volatile for AVAX/USD as it trades within a price range that is bound to keep speculators nervous. The strong downward cycle of Avalanche may look overdone, but until nervous sentiment vanishes, selling AVAX/USD with short-term wagers may prove to be the proper wager.

Avalanche Short-Term Outlook

Current Resistance: 66.7000

Current Support: 62.2500

High Target: 72.4000

Low Target: 53.4000

AVAX/USD

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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