The broad primarily based sell-off in crypto property continues this week, bringing one of many current layer-1 darlings again to a robust space of curiosity. Will Avalanche (AVAX) sellers lastly take revenue and let patrons again within the recreation?
Avalanche (AVAX) to Break Technical Help Space?
We talked about again in November that AVAX/USD didn’t appear to be done bottoming out after the pair topped out just under the $150 handle and dipped again beneath $120 in a few classes. The stochastic nonetheless confirmed overbought circumstances and after an enormous rally that began within the Summer time at round $10, there was seemingly extra revenue taking forward.
Nicely, it seems to be like extra income have been positively taken, particularly as broad risk sentiment shifted destructive since that publish, largely as a result of rise of the Omicron variant and its potential impacts on the worldwide economic system. This introduced again a excessive diploma of uncertainty and threat aversion conduct to the markets, particularly in crypto, at a time the place we noticed new all-time highs across the area.
AVAX/USD truly has been within the dumps since then, making its means all the way down to the $75 – $80 space, a earlier resistance-turned-support deal with which intersects with a rising ‘lows’ sample. This can be a set of patterns which will attract technical players, so its one to look at for bullish reversal patterns should you’re fundamentally bullish on the Avalanche Community (i.e., specializing in its fast ecosystem and complete worth locked development, Ava Labs chosen for Mastercard’s crypto program, and many others.).
In fact, there’s a good probability that this space is not going to maintain if Omicron and macro financial fears proceed to be the principle market focus. If these fears persist and/or we get destructive feedback on the worldwide economic system from this week’s central financial institution occasions, then it’s doable that this space will break in addition to merchants rush into secure havens just like the U.S. greenback.
In that case, we might even see AVAX/USD contact the subsequent main assist space across the $55 deal with, a doable state of affairs in per week given the weekly average true range of round $21. If that performs out, then that space will likely be one to look at because it was the earlier all-time excessive hit again in February.
What do you all suppose? Can AVAX bulls maintain the road right here round $75 – $80? Or is the subsequent value dump proper across the nook? Let me know within the feedback part beneath!