AVAX/USD: Short Term Bounce Higher Highlights Choppy Waters – 19 April 2022
AVAX/USD has bounced higher after hitting important lows yesterday, and the cryptocurrency remains in troubling waters as speculators make their decisions.
As of this writing AVAX/USD is above the 77.20000000 level, but its trading conditions have been swift. The choppy range of AVAX/USD mirrors the broad cryptocurrency market which has produced reversals off of important lower depths, but the momentum higher has not been accomplished with a strong amount of buying. The holiday season may also be having an effect on the amount of trading volume generated the past few days across the cryptocurrency world.
Traders should expect conditions to become more robust in the near term as speculators brush off their holiday modes and begin to operate fully again. AVAX/USD remains within the lower elements of its mid-term price range. Yes, it is above its dramatic lows produced in the middle of March, but Avalanche is within sight of those values and one dramatic day of selling could easily put the cryptocurrency up against key support levels.
While the broad market and AVAX/USD has been able to stage a price comeback since yesterday, speculators may continue to feel hesitant and wonder if the bounce upwards will prove to be short lived. Trend as always in digital assets remains a key element of sentiment, the slope downward which has been demonstrated the past two and half weeks in Avalanche continues to look unpromising. Perhaps optimistic bullish traders may perceive this as an ideal buying opportunity for longer term buys, but day traders using leverage should remain cautious.
If the support level of 77.00000000 crumbles and the 76.7500000 ration begins to see a test, this could set off alarm bells among speculators who may be tempted to believe AVAX/USD has further room to decline. Yesterday’s early lows tested the 72.00000000 juncture before finding buyers step into the landscape. The push up reached a high of nearly 78.50000000 yesterday upon a reversal, but this was met by headwinds. Day traders may believe via technical charts that there is greater downside potential compared to upside room to march short term.
Bearish speculators may want to wait for slight moves higher to ignite selling positions. Consolidation if it develops in the coming hours could cause more nervous sentiment to build. A negative sign for AVAX/USD would be the lack of a real fight for higher price levels. If the 78.00000000 is not challenged short term, this could be a signal additional weakness may appear in AVAX/USD and make it a worthwhile selling wager.
Current Resistance: 77.91000000
Current Support: 76.73000000
High Target: 79.17000000
Low Target: 72.68000000