Avalanche (AVAX) Price Struggles Amid Bearish Market Conditions

Avalanche (AVAX) Price Struggles Amid Bearish Market Conditions

Avalanche (AVAX), a prominent layer-1 blockchain, has recently experienced a significant downward trend. Strong bearish sentiment has dominated the market, pushing the cryptocurrency’s value lower. Ongoing market volatility has further exacerbated this decline as bearish traders maintain control.

However, despite these challenges, AVAX has shown remarkable resilience, achieving a 17% increase over the past month. This growth is largely attributed to a substantial $40 million developer incentive program and a pivotal mainnet update. These developments have fostered a positive outlook among traders, who believe AVAX has the potential to break through the key $30 resistance level. Still, the asset faces tough resistance, which may slow its upward trajectory.

The broader cryptocurrency market is undergoing a correction, leading to a widespread decline in altcoin prices. Bitcoin is holding steady around the $61,000 mark, while Ethereum has slipped below $2,500. Other major altcoins like SOL, BNB, XRP, and TON have also faced declines, mirroring AVAX’s price drop.

AVAX Price Decline Signals Bearish Sentiment

Over the last 24 hours, AVAX has seen a sharp 6.68% decline, currently trading at $25.89, down from a daily high of $28.05. This marks a notable fluctuation as the asset dropped steadily from its earlier peak of $27.76. The day’s low of $25.23 reflects the continued bearish pressure on the market.

Can AVAX Hold Its Ground Amid Bearish Momentum?

Looking ahead, AVAX could test the $24 support level if the negative market trends persist. If bearish sentiment continues to prevail, the price may fall further, with a potential drop to $22 or even as low as $20 in a major downturn—a 21% decline from current levels.

Technical indicators over the past four hours suggest that AVAX is facing a significant price correction. The Moving Average Convergence Divergence (MACD) indicates growing bearish momentum, with the MACD line (blue) diverging further below the signal line (orange) and the histogram bars deepening in red.

Additionally, on-chain data highlights AVAX’s current struggles. Around 67.03 million AVAX, worth approximately $1.73 billion, are currently “out of the money”—meaning they’re positioned at a loss. This starkly contrasts with the 9.45 million AVAX (about $244.55 million) that are “in the money.” With a relatively small 21 million AVAX remaining “at the money,” it underscores the cryptocurrency’s volatility.

Amid increasing bearish pressure and a 10% recent drop, AVAX is facing significant resistance. Although previous gains have instilled some bullish sentiment, the cryptocurrency’s future remains uncertain unless market conditions improve.