Avalanche (AVAX) Price Decline: Bearish Sentiment and Key Levels to Watch
Avalanche (AVAX) is currently trading at $18.87, reflecting a 5.34% decline in the last 24 hours.
The 24-hour trading volume stands at $512.40 million, and the total market capitalization has dropped to $7.85 billion, representing a 0.30% market dominance.
Current Sentiment: The overall market sentiment for AVAX is bearish, with the Fear & Greed Index showing a score of 29, indicating widespread fear among investors.
This suggests that traders are cautious and possibly expecting further downside.
Tokenomics Insight: The circulating supply of AVAX is currently 416.02 million, out of a maximum supply of 715.75 million.
The protocol is experiencing an annual supply inflation rate of 10.08%, which means approximately 38.11 million new AVAX tokens were added over the past year. This level of inflation can lead to long-term dilution if market demand doesn’t increase proportionally.
Key Technical Zones
Support Zone: $15.00 – $16.20
Resistance Zone: $22.00 – $25.50
AVAX is approaching a key support area. If it fails to hold, a further drop is likely. On the flip side, a break above $22–$25 would be the first sign of bullish momentum returning.
Current Outlook
Given the bearish sentiment, declining price action, and high inflation rate, Avalanche is expected to either fall further or trade sideways in the short term.
Traders should watch for signs of stabilization at the support zone or a breakout through resistance for a clearer direction.
Conclusion: Avalanche remains a top-tier Layer 1 project, but for now, the market remains cautious. Until volume increases and sentiment improves, price recovery may remain limited.
Comments
Post a Comment