Avalanche (AVAX/USD) just broke above a key resistance on the daily time frame!
Can the token sustain its upswing?
Or are we seeing a fakeout?
AVAX/USD: Daily
Avalanche (AVAX/USD) Daily Chart by TradingView
Like most cryptocurrencies, Avalanche’s token AVAX received a boost from risk-taking yesterday.
AVAX/USD, which had been consolidating under 12.00, jumped 25% higher and is now trading near the 16.00 zone.
But can the token sustain its upswing?
The fundamentals are on the bulls’ side after Avalanche’s developer Ava Labs announced its partnership with Amazon Web Services (AWS).Word around is that Ava Labs will offer “Subnet deployment” as a service, which will make it easier for non-fungible tokens (NFT), Web 3, and crypto developers to build customized blockchains on Avalanche’s network.
Bad for transaction lags, good for Ava Labs and the crypto lads!
AVAX/USD’s next candlesticks will tell us if the pair has seen a bottom.
A rejection at the 38.2% – 61.8% Fibonacci retracement zone would suggest that AVAX’s downtrend isn’t over. AVAX/USD could dip back below the 100 SMA and revisit its December lows near 10.80.
But if AVAX/USD remains above the 100 SMA, or if it busts above the 200 SMA support, then the pair could make a play for the 20.00 previous high and maintain maybe stay inside a range instead of making lower lows.
What do you think? Is the downtrend over for AVAX?
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