The Avalanche (AVAX/USD) was trading 6% lower on Thursday after the broader market saw a large sell-off. Avax was on many investors' watch list after the recent rally, which saw the price rise from $50 to $145. dealing.
Avax has corrected by more than 40% from the highs it hit in November, and this could be a great opportunity for investors, but it is crucial for investors to be patient and not jump in too soon. Avax has been moving sideways in a narrow range, which suggests a big shift in the coming days. If the patch runs out, Avax could hit a new all-time high, but is this the right time to get into Avax?
Here's what the graphics are pointing to:
Avax had a big high of over 150% which helped it to reach a new record high of $147, however it has now been corrected to $57 which is the 0.618 Fibonacci level. So this could be the Potential Reversal Zone for Avax.
Avax has been consolidating in a very narrow range this week, which could be a sign that big movement can be seen soon. However, this does not mean that investors should take long positions now, as the price can move sharply in any direction and therefore the price can also fall. Hence, traders should wait for a clear break above the zone before making any long entries.
Traders should also expect Avx to break the 50-day moving average, which would confirm an upward bias.
Long entries should be avoided below the $84 zone as it is a crucial support zone.
A target of $110 could be set, followed by $130 and a new all-time high could also be seen in the coming months.
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