Avalanche price prediction: AVAX set for 18% gains to $90.00
|- Avalanche receives a massive boost of tailwinds in volatile markets.
- Occurred losses fromRussia-Ukraine tensions could be rewound today as AVAX price action is set to pop above $81.
- If the 55-day SMA is crossed expect to see a quick rally towards $90.00, holding 18% gains intraday.
Avalanche (AVAX) price action shows massive resilience as price action is back on its feet after two consecutive days of sharp losses caused by geopolitical tensions. Investors have already reassessed the situation, are looking beyond the current state of affairs, and putting money back to work. With that, the cash inflow in Avalanche price action is setting AVAX ready for a potential 18% gains intraday.
AVAX price action sees massive inflow from investors
Avalanche price action showcases how resilient and flexible markets can be at almost any event. Markets traded on the back foot over the weekend and fell further on Monday amid fresh rhetoric and headlines. But as the dust settles, yesterday was a tremendous tipping point where almost every asset class made a 180 degree turn at a similar moment and saw equities and cryptocurrencies stepping onto the main stage and closing with solid gains. And that rally does not look to come to an end just yet as the $81.00 handle is just a few bucks away and could easily get broken to the upside once the US session kicks in.
AVAX price is thus ready to hit $81.00, and with the 55-day Simple Moving Average (SMA) at $83.34, that is quite a narrow bandwidth in which AVAX faces some resistance. Seeing that there are multiple tailwinds backing cryptocurrencies in their rally, expect this bandwidth to be easily broken and for Avalanche bulls to set sail for $90.00. This would be around the red descending trend line, which makes sense as here bears will want to defend the downtrend they have been playing since November 22, but it still constitutes a solid 18% of gains for bulls.
Current tailwinds are linked to the fact that the latest situation in Ukraine is all-in-all relatively stable as there have been no further developments these past few hours. Should Putin advance beyond the borders of the Donbass, expect this to trigger even some more sanctions and a further cut in the access of Russia to financial markets resources. Expect that cryptocurrency assets will take a significant step back with a return to $69 before falling back to $50.93, a level identified from October 13.
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