AVAX/USD has fallen to fresh lows in early trading, and it is now pressed up against important mid-March support which should be watched.
After moving above 90.55000000 on the 8th of March and acting like it may challenge a higher price range seen in late March and early April, AVAX/USD has turned downward. The trend being generated in Avalanche is mirroring the results of most other major cryptocurrencies, and the downturn in AVA/USD is approaching important support levels which may make speculators nervous.
Only one week ago, dips in AVAX/USD could have been interpreted as buying opportunities by bullish technical traders. And some speculators still may feel that way, but the onslaught of lower moves seen the past week have been strong and unfortunately for some traders perhaps going into today’s trading session, price velocity down has quickened. Suddenly, AVAX/USD is near important junctures last sincerely tested on 18th of March.
Support which is nearby at the 78.7500000 should be watched. If this level begins to look vulnerable this could set off alarm bells among not only bullish traders who may feel the ‘expensive’ heat of a downward trajectory, but could indicate a stronger tide lower. If current support levels falter and the 76.00000000 mark were to be challenged, this would then bring AVAX/USD into a price realm which would be within sight of crucial mid-term lows.
Any moves lower from the current price range of AVAX/USD will continue to raise nervous sentiment. Since the 14th of March the broad cryptocurrency market had taken a rather intriguing upwards climb and broken through plenty of rather durable resistance levels with relative ease. On the 14th of March AVAX/USD was trading near 65.90000000, which had it traversing near important lows seen in February.
If the development of a bearish trend in the past week continues to be demonstrated and current support levels are proven weak, this would be a bad sign. The long term down trend in the broad cryptocurrency market has been easy to define, recent trading since the middle of March did show the capability of a rebound higher. A retest of lower support may make plenty of speculators feel as if they have been tricked by a false breakout, including the AVAX/USD crowd.
Some bullish optimists may believe the recent selloff exhibited within AVAX/USD is merely a temporary burst of headwinds. However, any trader looking to take a long position of AVAX/USD is advised to use secure stop loss orders, to guard against the potential of another round of nervous selling igniting in the near term. Traders should expect plenty of volatility today as Avalanche swims in dangerous waters.
Current Resistance: 80.21000000
Current Support: 78.75000000
High Target: 84.82000000
Low Target: 75.40000000