Avalanche Faces critical Support Level, Hints at Possible Rebound
Avalanche (AVAX) has fallen to a key support level at $20, marking a 65% drop from its December peak. This decline mirrors the broader crypto and stock market trends, with Bitcoin and altcoins entering a bear market.
Two major market risks are Donald Trump’s proposed tariffs and concerns about the AI bubble bursting. Additionally, Avalanche is losing market share to newer projects like Berachain and Base. Its total value locked is now $1.66 billion,down from $12 billion at its peak. Network app revenue has also decreased, generating just $430,000 in March compared to $52 million in December 2023.
Despite these challenges,there are some positive developments. Sumitomo Mitsui Financial Group chose Avalanche for its upcoming stablecoin’s blockchain infrastructure. There’s also hope for a spot AVAX ETF approval by the SEC, which could attract U.S. investors. However, recent data shows a preference for Bitcoin etfs.
Technically,AVAX has formed a falling wedge pattern,a bullish signal. If it breaks above $20, the next resistance is at $30. A drop below $20 could signal further declines, with the next support at $9.
- Avalanche’s total value locked is lower than competitors.
- App revenue has declined sharply.
- A spot AVAX ETF could boost exposure.
On the luminous side, the $20 level is a crucial point.If it holds, a rebound is possible. If it breaks, further declines may follow. Investors should watch this level closely.
For more insights, check the AVAX price chart for detailed analysis.
