The past day of trading in Avalanche has produced quick results, which are likely testing the fortitude of speculators who are pursuing AVAX/USD. In early trading today, Avalanche reversed lower after achieving a high yesterday of nearly 96.20000000, sinking to slightly below the 89.00000000 ratio a few hours ago. However, AVAX/USD quickly reversed higher after hitting this low and its bounce has taken the cryptocurrency above the 94.20000000 mark as of this writing.
Bullish technical traders may be fueled by an optimistic outlook as AVAX/USD is within sight of mid-February highs. On the 17th of February AVAX/USD was trading above 98.00000000. Yes, on the 24th of February Avalanche was trading a hair under the 64.50000000 mark, and then produced choppy trading higher until the 14th of March when AVAX slumped again within sight of the 65.00000000 level. This is written as a warning to speculators who believe Avalanche will not slide lower again.
However, like the broad cryptocurrency market AVAX/USD has been able to produce a solid trajectory higher for almost two weeks. Volatility is not extinct; there will be fast moves within AVAX/USD that is promised. Speculators need to understand Avalanche can move in a hurry and entry price orders are strongly advised.
If AVAX/USD is able to sustain its current price range and shows ability to keep trading above the 94.00000000 today, this may be a solid signal that speculators may be anticipating higher moves. The recent move upwards in AVAX/USD still has the cryptocurrency within the lower realms of its six month charts, but Avalanche is certainly showing signs of challenging highs within its three month pattern.
If AVAX/USD picks up additional momentum and the 95.0000000 and 96.00000000 marks are suddenly challenged again, some optimistic bulls will likely target higher ratios like the 98.00000000 juncture. The broad cryptocurrency market and the major digital assets are showing signs of life, and are flirting with important mid-term highs. If sustained trading starts to make resistance levels vulnerable another leg up may come sooner rather than later, including in AVAX/USD.
Traders need to use risk management effectively. After sustaining a serious bearish trend since November, AVAX/USD is beginning to tangle with important resistance and show enough strength to create anticipation of higher values. However, until AVAX/USD breaks above the 98.00000000 level, traders may remain suspicious about potential reversals lower also.
Avalanche Short-Term Outlook
Current Resistance: 95.60000000
Current Support: 93.55000000
High Target: 98.90000000
Low Target: 88.85000000