AVAX/USD is trading slightly above the 86.0000 level as of this writing. Yesterday’s price action within Avalanche saw the cryptocurrency hit a low of nearly 76.2500 in early trading. AVAX/USD correlated rather strongly with its major counterparts in the crypto marketplace. The bounce higher achieved by AVAX/USD since yesterday could prove to be significant for technical traders per their perceptions, if they have a bullish outlook.
Yesterday’s price action showed that short term support was reliable and AVAX/USD failed to penetrate prices seen on the 6th of February when the cryptocurrency traded near a value of 74.000. The ability to sustain prices above the 76.000 level also maintained AVAX/USD pricing near values last seen on the 20th of January before a rapid spike lower happened. On the 22nd and 24th of January AVAX/USD hit the 55.0000 juncture below.
If AVAX/USD can maintain its current price levels and continue to trade above the 86.000 level, this may attract the attention of speculators who continue to believe Avalanche was oversold and has further room to climb. If AVAX/USD is able to challenge the 87.0000 to 88.0000 levels in the near term, there may be reason to technically suspect the 90.0000 ratio is a legitimate target. Traders as always are urged to remain realistic with their goals.
Broad market action in the cryptocurrencies has seen plenty of choppy results the past week, but if the short term trend within AVAX/USD is maintained and support holds, seeking upside trajectories in value may prove to be a worthwhile wager. However, if AVAX/USD suddenly begins to trip lower and breaks below the 86.0000 mark, skeptical traders should monitor short term price action carefully. If the price of AVAX/USD begins to test the 85.7500 to 85.2500 marks, this could spark nervous selling which believes support levels seen last week may be a potential magnet.
Choppy trading may continue to be seen within AVAX/USD, if the broad cryptocurrency market is not able to break above key resistance levels which are being displayed by many of the major digital assets. Price levels from the 20th to the 21st of January may prove to be a significant trigger regarding short-term behavioral sentiment. If the ‘averaged’ and correlated resistance levels from these dates can be broken higher, AVAX/USD may see rapid moves higher. Until then, traders may want to continue to pursue quick hitting trades which have nearby targets as they pursue the market.
Avalanche Short-Term Outlook
Current Resistance: 86.9800
Current Support: 84.7800
High Target: 90.3000
Low Target: 79.9000
