I was checking the market today and came across Avalanche (AVAX) and Fetch.ai (FET). Both seem to be in bullish formations according to some analysts, but I can't help but feel skeptical. Let’s dive into what I found.
First up is AVAX. There's this falling wedge pattern that supposedly broke out recently. Captain Faibik, the analyst behind the video, seems pretty convinced. He even says there's strong bullish volume behind it. The wedge has a new support range between $25 and $26 now, which used to be resistance.
But here's where my skepticism kicks in: there are a few levels of resistance that AVAX needs to clear first. There's one around $31.50 where it consolidated previously, and another between $45 and $50 that looks like it's going to be tough to get past. If it does manage to go through all that, maybe reaching the target of $71.50 isn't out of the question.
Then there's FET, which apparently just confirmed an upside breakout from a descending broadening wedge pattern? This one is new to me. But again, Captain Faibik is on it, saying the breakout level is currently at support around $1.40.
Immediate resistance for FET seems to be between $1.70 and $1.75 where it's hovering right now post-breakout. But according to him, if things go well for FET there’s a much higher target at about $3.90 down the line.
Now here’s where things get tricky: how reliable are these breakouts when you consider broader market conditions?
We've seen how quickly things can turn sour due to external factors; a global recession or geopolitical tensions can send crypto prices plummeting regardless of what technical indicators say.
And let’s not forget about regulations! One minute you're fine, the next you're facing bans in several countries overnight.
So what's my conclusion here? While technical analysis has its place—especially for short-term traders like me—I think relying solely on it is risky business in crypto land.
A combination of methods seems best: use TA but also check fundamental factors like ongoing developments in projects and even regulatory news popping up here and there.
As for AVAX and FET? I might wait a bit longer before getting my hands dirty with either of those tokens
