A fall in value early this weekend to new long term depths did put AVAX/USD under 14.0000 briefly, a slight reversal higher has occurred but lows remain in sight.
As of this morning, AVAX/USD is trading near 15.6500, this after being able to reach a high of nearly 16.3400 late on Sunday. Avalanche has suffered a severe fall in value like its major counterparts, but its low water marks on Saturday which went below the 14.0000 still managed to float above prices seen in mid-August and late July of 2021. The broad cryptocurrency market remains extremely fragile, and technically while reversals higher have been achieved in the past half day, lows are clearly within sight and threatening.
AVAX/USD produces fast trading and price velocity has been dangerous the past few days. Speculators brave enough to participate in cryptocurrencies, should certainly use stop loss and take profit orders while engaging in trading. If current support levels of 15.2000 begin to see a flirtation and start to appear vulnerable, speculators may believe that further lows will rapidly be demonstrated. A fall below the 15.1000 mark could stir additional selling in AVAX/USD.
While broad market conditions remain extremely nervous and Avalanche is in sight of long term lows, technical traders may be intrigued that AVAX/USD still has lower depths to explore. If the bearish trend stays intact and the slight bounce higher produced yesterday and early today fade, AVAX/USD could begin to test lower depths below the 15.0000 which may attract the attention of more bearish speculators.
Yes, AVAX/USD could certainly move higher and reversals upwards should always be expected, because no asset moves in one direction when trading. However, the long term downward trajectory within the cryptocurrency market and Avalanche are self-evident, and betting against this trend should be done only with extreme caution and great risk taking tactics. Being a contrarian under the current market conditions may prove to be extremely dangerous, thus maintaining a selling stance appears to be the logical choice for most traders.
If AVAX/USD does traverse slightly higher and challenges resistance near the 15.7000 to 15.8500 ratios, speculators may want to consider short positions. If Avalanche cannot maintain a price above the 16.0000 juncture and continues to keep its lower depths within sight, traders may want to prepare for the potential of the lower trajectory to stay in effect. Selling AVAX/USD remains the seemingly worthwhile wager for speculators in the near term.
Avalanche Short-Term Outlook
Current Resistance: 16.09000000
Current Support: 15.18000000
High Target: 17.12000000
Low Target: 13.98000000