AVAX price continued its strong downward trend, moving from the year-to-date high of ~$40 to $12.0. It has crashed to its lowest level since October 2023, making it one of the crypto market’s top laggards despite major catalysts.
AVAX Price Dives Despite Major Network Catalysts
Avalanche, one of the biggest layer-1 networks in the crypto industry, has remained in a strong downward trend this year as bulls have been elusive.
Its volume in the spot market has dropped, while the futures open interest has tumbled to $478 million from the September high of $1.8 billion.
Like Polygon, the ongoing AVAX price crash occurred even as its key network metrics remained strong. For example, the supply of stablecoins in the network rose by 5.20% in the last 7 days to $1.63 billion.
Similarly, the cumulative DEX volume on its platform was among the highest on layer-1 networks, reaching over $105 million in the last 24 hours.
Avalanche’s total value locked (TVL) has held steady in the past few days, helped by some of the top networks. For example, Spark, the network that generates stablecoin yield, has accumulated over $226 million in total value locked (TVL), a few weeks after its deployment.
Avant Protocol’s assets have jumped by 6% in the last 30 days to $108 million, while Blackhole has gained over $102 million in assets. Avalanche has also become one of the top players in the growing RWA industry.
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Meanwhile, VanEck is about to launch its spot AVAX ETF, a move that will allow investors to generate yield on the network. In a filing last week, the company said it will stake up to 70% of the assets, allowing investors to generate a yield of 7.5% today.
Meanwhile, Avalanche’s transactions have surged in the past few months, with the daily figure rising to over 2 million a day in the last 31 consecutive days.
Avalanche’s performance is largely due to the ongoing crypto market crash, which has affected most cryptocurrencies this year, including Bitcoin and Ethereum.
Its performance has also deteriorated as Ethereum has continued to gain market share across all assets, with analysts predicting that other layer-1 chains will struggle to attract developers.
Avalanche Price Technical Analysis
The daily timeframe chart shows that the AVAX price has been in a strong downward trend in the past few months. It dropped from a high of $36 in September to the current $12.
The token has moved below the important support level at $14.95, the lower boundary of the descending triangle pattern, a common bearish continuation sign.
Avalanche price has dropped below the 50-week and 100-week Exponential Moving Averages (EMAs), indicating a continuation of the downtrend.
Therefore, the most likely scenario is that it continues to fall, potentially to its all-time low of $8.45, its lowest level in September 2023. A drop below that level will signal more downside, as demand remains elusive.
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