Crypto Watchlist: Is the Downtrend Over for Avalanche (AVAX/USD)?

Avalanche (AVAX/USD) just broke above a key resistance on the every day timeframe!

Can the token sustain its upswing?

Or are we seeing a fakeout?

Avalanche (AVAX/USD) Each day Chart by TradingView

Like most cryptocurrencies, Avalanche’s token AVAX received a lift 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 basics 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 can make it easier for non-fungible tokens (NFT), Web 3, and crypto developers to construct 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 on 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 when AVAX/USD stays 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 possibly stay inside a variety as an alternative of constructing lower lows.

What do you think that? Is the downtrend over for AVAX?

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