AVAX/USD: Sudden Burst Higher This Morning to Test Sentiment
AVAX/USD has produced a quick reversal higher this morning as it has mirrored fast results seen in the broad cryptocurrency market.
AVAX/USD is trading near the 79.0000 juncture as of this writing, which is a rather solid climb from its lows displayed late last night when the cryptocurrency was trading slightly above the 72.000 ratio. Volatility remains a companion of AVAX/USD and speculators need to be prepared for the potential dangerous ride. The broad cryptocurrency market has seen an upturn in value also this morning.
In early trading today AVAX/USD did briefly touch and penetrate the 80.0000 mark, but the challenge which touched prices last seen on 4th of March was turned back. Traders should expect choppy conditions to remain rampant in the near term as the broad cryptocurrency market continues to produce nervous results. If AVAX/USD is able to sustain a move higher it will certainly have to surpass the 80.0000 juncture, but to change the attitude of many of its backers, a rise above the 82.0000 level would likely have to be maintained too.
On the 1st of March, AVAX/USD was trading above the 90.0000 value. And on the 17th of February AVAX/USD was trading a hair below the 99.0000 mark. The ability of AVAX/USD to generate large percentage moves remains a staple of its trading and speculators should be cautious regarding their use of risk management. The problem for AVAX/USD taking these prices into account is the bearish trend that has been produced.
While the short term move upwards this morning is intriguing, and may pull some speculators into the realm of buying positions to pursue a higher trend, they should also consider the notion that today’s early move will be met with headwinds. If AVAX/USD is not able to climb past the 80.0000 again in the short term and sustain a price above, skeptics may look at this price realm as a place to ignite selling positions.
If current short term support falters near the 78.7000 to 78.4000 values, and prices below look vulnerable traders should be on the lookout for a new test of lower depths. Price velocity remains dangerous in AVAX/USD, and its choppy conditions as it fights within the lower realms of it mid-term range remains technically weak within some perspectives. The broad cryptocurrency market should be monitored along with Avalanche to gauge short term sentiment which remains skittish.
Current Resistance: 79.5500
Current Support: 78.4400
High Target: 84.6200
Low Target: 73.6900