AVAX/USD was able to produce some gains over the weekend, but in early trading today has reversed slightly lower as fragile trading conditions prevail.
AVAX/USD is trading within the lower part of its long term range, but unlike many of its major counterparts Avalanche has not slumped to lower values that it traded in July of 2021. Yes, AVAX/USD has certainly lost plenty of value. On the 1st of April Avalanche was trading above the 100.00000000 juncture. On the 12th of May AVAX/USD approached the 22.00000000 level as nervous sentiment turned into widespread panic as the broad cryptocurrency market suffered a sea of losses last week.
However, on the 20th of July 2021 AVAX/USD was trading slightly below 10.00000000. Yes, Avalanche was a relatively new cryptocurrency in the spring of last year and was enjoying plenty of attention from influencers who helped talk Avalanche higher. On the 10th of February 2021, AVAX/USD was trading near the 55.00000000 mark. The broad cryptocurrency market remains extremely volatile and Avalanche is part of the nervous pack.
Even though there has been a slight recovery among most of the major cryptocurrencies, the word ‘slight’ is highlighted. Technical traders may be eyeing the current price of AVAX/USD and believe it has been vastly oversold and in the future long-term they may be proven correct. However, for day traders who witnessed last week’s bloodbath, caution may be an instinctive survival mode. Conservative wagers should be considered by speculators in the immediate days ahead.
If AVAX/USD can sustain its current price above the 34.00000000 mark and challenge the 35.00000000 ratio, this may attract short term traders who believe a push higher towards the 36.00000000 ratio can be demonstrated quickly. Trading conditions will remain volatile today and in the near term, nervous market conditions will likely continue to be seen as speculative forces try to establish equilibrium in the financial markets.
Unfortunately the past couple of weeks of trading have displayed few signs of a tranquil market place. Momentum traders may be looking at AVAX/USD and believe it has further room to roam downward. If short term anxiety suddenly becomes more pronounced and nervous trading hits the broad digital asset sphere, Avalanche could certainly see its bearish trend flourish again.
If support levels which are nearby around the 33.5000000 begin to see a challenge and the 33.00000000 ratio falters, this could be a negative signal and selling could become stronger. Any move back below the 30.00000000 juncture for AVAX/USD could spur on another wave of aggressive selling if holders of Avalanche lose additional confidence in the cryptocurrency.
Avalanche Short Term Outlook:
Current Resistance: 35.39000000
Current Support: 33.25000000
High Target: 38.87000000
Low Target: 27.06000000