Avalanche (AVAX) continues to face downward price pressure, influenced by heightened geopolitical instability and bearish technical signals, even as its underlying network demonstrates robust usage.
AVAX experienced a significant drop of nearly 14%, falling to approximately $18.53. This decline coincided with increased market volatility following geopolitical events in the Middle East, including an Israeli strike on Iran. The broader altcoin market also retreated as rising oil prices and inflation concerns prompted investors to seek safer assets, amplifying risk-off sentiment.
Technically, AVAX is trading below its key moving averages. Analysts have identified a bearish double-top pattern on the charts, indicating persistent resistance and suggesting weak near-term momentum could continue.
Contrasting the price weakness, the Avalanche network itself is showing significant strength. It recently achieved record highs in several key metrics: gas consumption reached 2.6 trillion units, daily transactions hit 18.1 million, and transactions per second also peaked. This high level of network activity points to sustained ecosystem usage and long-term potential.
Market analysts advise investors to closely monitor critical technical support and resistance levels alongside broader macroeconomic developments. They suggest balancing the current short-term bearish signals with Avalanche’s strong underlying network fundamentals when evaluating the asset’s prospects.