This drop probably jolted quite a few AVAX holders awake. $AVAX It fell 16.08% in a day, to 6.85, with a 24-hour low of 6.74—basically wobbling right on the floor.
Anyone holding it is probably caught between a rock and a hard place right now: sell, and risk selling at the bottom; hold, and worry that 6.74 won’t hold and the next leg down will set a new low. The worst part isn’t how much it has fallen—it’s that after a drop like this, you can’t even tell whether it’s done falling.
I wouldn’t chase a short at this level. I’d wait for it to bounce back toward the 24-hour midpoint at 7.46, then see if the bears still have any strength. Chasing a short at the floor and waiting for a bounce to the midpoint are two completely different risk profiles.
Bias: Watch for a short; don’t chase one now. Reference range: 6.85–7.46. Wait for a bounce near 7.46 before reassessing. Invalidation level: above 8.17. Target: 6.04. Risk level: high. Assuming an entry near 7.46, the loss at the invalidation level would be about 0.71, while the potential gain to the target would be about 1.42—a risk/reward ratio of roughly 2.0.
Would you take a shot at this risk/reward ratio, or would you rather let it pass?
For reference only; not investment advice. Pay attention to position sizing.
$AVAX
#AVAX #TradingOpportunity
Anyone holding it is probably caught between a rock and a hard place right now: sell, and risk selling at the bottom; hold, and worry that 6.74 won’t hold and the next leg down will set a new low. The worst part isn’t how much it has fallen—it’s that after a drop like this, you can’t even tell whether it’s done falling.
I wouldn’t chase a short at this level. I’d wait for it to bounce back toward the 24-hour midpoint at 7.46, then see if the bears still have any strength. Chasing a short at the floor and waiting for a bounce to the midpoint are two completely different risk profiles.
Bias: Watch for a short; don’t chase one now. Reference range: 6.85–7.46. Wait for a bounce near 7.46 before reassessing. Invalidation level: above 8.17. Target: 6.04. Risk level: high. Assuming an entry near 7.46, the loss at the invalidation level would be about 0.71, while the potential gain to the target would be about 1.42—a risk/reward ratio of roughly 2.0.
Would you take a shot at this risk/reward ratio, or would you rather let it pass?
For reference only; not investment advice. Pay attention to position sizing.
$AVAX
#AVAX #TradingOpportunity