Ready to catch AVAX's momentum?

Hypothesis

Post-negative geopolitical catalyst, we have again seen the resilience in our asset class this cycle.

Many things can disrupt risk assets, and geopolitical tensions and war are definitely one of them. While tensions remain high, we do need to err on the side of caution, but we can also take advantage of the current situation by taking clear-cut, high-conviction opportunities.

Technical analysis

AVAX shows very similar price action to many assets, even RUNE, one call that is performing successfully.

The difference between AVAX and RUNE is that it hasn't revved up just yet. Some exhaustion in the overall market could give us a bid back into this key area of demand, which aligns with this market-wide 61.8% fib. It also aligns with some key prints of price action, which we love to identify in and around key areas of demand.

The LOI region is between $33.000 and $29.500; any retracement into this region would bring about a beautiful high conviction play with great returns, even to take out near swing highs.

Play for traders

Scenario 1: Stacking limit orders from the top and bottom of the box, splitting risk would be a good call here.

We learned from RUNE that being too audacious in areas of price and missing an entry is also fine. The environment for RUNE is different from the environment for this AVAX opportunity, and current momentum is favoured to the upside. So, a limit order at the top of the box at $33.000 would be a good fill to catch the momentum, or being more patient and trying to squeeze out more would be a limit order at the bottom of the box at $29.500.

Scenario 2: You could take a limit order once the price trades into the box region.

LOIs

• $29.500
• $33.000

Risk and reward

Take profit

• TP 1: $44.000
• TP 2: $48.260
• TP 3: $65.000

Play for investors

All around, this sell-off has affected most assets.

We will sound like a broken record, but while trading within this sell-off region, it's best practice to accumulate here while BTC trades positively above key support.

Cryptonary's take

This is trading with conviction. It may seem boring, but raking in returns is not, and you do that with a clear-cut, concise strategy that follows a structure.

If you do that, you have success. Here is another opportunity following our current working framework. We are identifying assets showing signs of demand, followed by strength when other assets aren't so strong, all while giving us technical conviction.