AVAX---Token

Regarding AVAX, it has another name, Avalanche.

Many people are very familiar with this name, so we will analyze it directly from the currency price.

AVAX has increased by up to 185% in this wave. As an old currency, the increase is already very good. Moreover, before the launch, AVAX has been falling all the way since February this year. After experiencing the overall bear market this year, it finally reached the position of 8.6. This Except for the price that appeared in 2021, the price has never reached this low level so far, so judging from the starting price, it is considered a low level. It can also be called an oversold position.

The question that many friends have been asking recently is whether AVAX can still be purchased. The reason why I ask this is because many people did not pay attention to this token at first. This token has been silent for a long time and is relatively unfamiliar to many newcomers. They don’t know its value, so after the token surges, many people want to chase it higher.

But objectively speaking, the popularity of AVAX has basically passed. The fall after the surge can be regarded as an overbought callback, which means that selling pressure will inevitably occur after the desire to buy reaches a certain position.

Moreover, from the perspective of chip pressure, AVAX pulled back without touching the pressure level range. The latest pressure level range above is around 26-30. A direct pullback without touching the pressure level shows that the selling pressure above is still relatively large, whether it is Those who benefited from the bottom or were stuck at the top have already shipped and cashed out.

From a technical perspective, the recent support level of AVAX's Fibonacci retracement level is around 18.5. Currently we can see a preliminary callback trend. If the 18.5 support level is broken, then the lower daily Bollinger Band midline and Fibonacci coincidence support is at 16.65. This is the deepest short-term correction. If this position continues to break, sorry, it may enter a deep correction.

At the same time, this round of rise of this token is also based on the rise of Bitcoin and market popularity. If Bitcoin continues to correct, then this token will definitely follow, so paying attention to the market trend is the key.

Pay special attention to the fact that the support level of 16.65 is the middle line of the daily Bollinger Bands, the Fibonacci 50% position and chip support are three concentrated support levels. If this position cannot be supported, do not blindly build a position.

So at what depth can a position be opened after a correction?

For a deep correction, you can refer to the MA200 daily line level, which is also the Fibonacci 78.6% position, which is around 12.

In other words, if you lose this opportunity and the market pulls back, this position can be an effective reference if you want to open a position after the pullback ends.

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