Avalanche token, AVAX, tumbled 7.02% in the past 24 hours, underperforming the broader crypto market’s 2.96% decline, as traders weighed profit-taking, technical breakdowns, and looming ETF optimism. At press time, AVAX price traded around $23.24, down from intraday highs near $26, with market cap sliding to $9.8 billion.
Avalanche ETF Buzz Meets Broad Sell-Off
Despite fresh bullish headlines, most notably Grayscale’s recent filing for a spot AVAX ETF with the SEC, the token slipped under pressure from a broader market correction.
The total crypto market cap shed nearly $120 billion, with Bitcoin losing 2.8% and Ethereum 3.1%, faring better than Avalanche’s deeper slide.
The sell-off also followed a strong rally, when AVAX coin surged ahead of SkyBridge Capital’s $300M asset tokenization announcement on Avalanche. That rally peaked at almost $26 on August 17, but the post-catalyst “buy the rumor, sell the news” pattern has kept selling pressure elevated.
Fundamentally, Avalanche continues to expand its footprint: the network now hosts 700+ dApps across DeFi, NFTs, and gaming, surpassing Solana and Optimism in raw dApp count.
Yet usage metrics paint a mixed picture, with daily active addresses sitting at 41,200, ranking Avalanche 12th among L1 blockchains, far below others like BNB Chain and NEAR.
Crunch Time for AVAX Price Around $23
Chart watchers highlight the Avalanche’s fragile technical setup. According to cryptocurrency trader Jack Adams, AVAX is “breaking through a tough resistance zone,” but the trend remains bullish so long as price holds above the weekly EMA.
Adams set a $36 target in the coming weeks but warned that losing $20 support could trigger a retest toward $14.
Avalanche price has dropped below $23.99, breaking a key support level. This has triggered selling actions from algorithms. Three important simple moving averages are closely grouped: the 30-day average is at $23.68, the 50-day is at $23.21, and the 100-day is at $21.63.
AVAX crypto SMAs | CryptoQuant
This situation means the AVAX price is at a critical point. It could bounce back if it gains some momentum, or it might fall further if the market sentiment worsens.
Volume paints the same cautionary tale. 24-hour turnover sits at $875 million, down nearly 1%, with open interest across derivatives climbing 3.3%. That signals leveraged longs were flushed out during the dip, increasing the risk of further liquidations if prices keep sliding.
Currently, $20 is a key support level for Avalanche’s AVAX coin. A bounce back to $25–$26 could rebuild confidence and target $30–$36. If it fails to hold support, it may drop to the mid-teens.
