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Avalanche Price Struggles as Stablecoin Growth Fails to Boost Momentum
Avalanche (AVAX) continues to face downside pressure as the token struggles to maintain the $13 support level, with bearish chart patterns remaining intact despite increased trading activity and ongoing ecosystem growth. At the time of writing, AVAX was trading at $13.20, down 0.2% over the past 24 hours.
AVAX Stuck Near Key Support
Over the past week, Avalanche has traded within a range of $12.87 to $14.63, posting a 2.4% weekly decline. On a monthly timeframe, the token is down roughly 15%, keeping price action pinned near a critical support zone that has been tested multiple times. Despite repeated defenses by buyers, the level remains under pressure as broader market weakness weighs on sentiment.
Trading Activity Rises as Price Stalls
Interestingly, trading activity has picked up even as price movement remains muted. 24-hour trading volume jumped 41% to $301 million, suggesting increased participation as AVAX tests lower levels.
In derivatives markets, futures volume climbed 21% to $591 million, while open interest edged up 1.2% to $515.5 million, according to CoinGlass data. This indicates that traders are opening new positions rather than exiting existing ones, reflecting heightened engagement despite uncertain direction.
Ecosystem Growth Fails to Spark a Rally
Avalanche’s network activity has continued to expand as 2025 draws to a close. Usage on the C-Chain remains on an upward trend, while total value locked has been rising steadily. The stablecoin supply on the network has also grown to over $1.5 billion, signaling fresh capital inflows.
Institutional interest has strengthened as well, highlighted by AVAX’s inclusion in the Bitwise 10 Crypto Index ETF and expanded USDC custody support on the C-Chain. Still, these developments have yet to translate into upward price momentum.
Technical Picture Remains Bearish
From a technical standpoint, AVAX remains locked in a long-term downtrend. Every rally since prices last traded above $30 has been capped by a descending trendline. A previously formed rising wedge has already broken to the downside, reinforcing bearish control.
Price is now compressing around $13, forming a pattern similar to a descending triangle. The RSI near 42 suggests weak momentum, while fading volume shows selling pressure has eased but demand remains cautious. A break below support could expose lower levels, keeping AVAX vulnerable in the near term.
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