- Bulls and bears collide as Avalanche price breaches crucial $10 support.
- 99.5% of AVAX holders find themselves in a loss : IntoTheBlock.
As another victim of the bearish crypto market, the smart contract blockchain, Avalanche (AVAX) has been grappling with bearish pressure for over a month. Over the past 30 days, AVAX’s price has plummeted by 21.52%. It hit an all-time low of over two years at $9.997 on August 28. However, the 3% surge in the past 24H has marked a recovery, with AVAX currently stabilizing at $10.45. Notably, the coin remains a substantial 93% away from its ATH.
According to the latest insights from the crypto analytics platform IntoTheBlock, the alarming number of AVAX holders in profit has hit an all-time low. While similar levels were observed in June and December of 2022, followed by dual implosion of Terra’s UST and LUNA, and after FTX’s bankruptcy, yet this marks the first time that an overwhelming 99.5% of AVAX holders find themselves in a loss.
In contrast to this downtrend, there has been a notable 25.75% increase in trading volume, reaching $128 million in 24H.
Analyzing recent developments
The token analytics dashboard has unveiled that Avalanche unlocked 9.54 million tokens on August 26, accounting for 2.77% of the total supply and valued at $103 million. This allocation includes 2.25 million AVAX tokens for strategic partners, 1.67 million for foundation, 4.5 million for team. And 1.13 million for airdrops.
Moreover, Throughout the year, the AVAX ecosystem has undergone several significant developments. These include a collaboration with Alibaba Cloud, a subset of the prominent Chinese e-commerce conglomerate Alibaba, aimed at deploying metaverses on the layer 1 blockchain.
Additionally, Avalanche joined forces with MasterCard, part of an effort to fortify the payment giant’s presence in the Web3 space. More recently, the Avalanche Foundation introduced the $50 million Avalanche Vista initiative, focused on investing in real-world asset (RWA) tokenization.
Also, a brief depeg of the USDC stablecoin in the first quarter of 2023 triggered increased transactions. And user activity on Avalanche. However, these ecosystem advancements have yet to make a substantial impact on the coin’s price performance.
Will The AVAX Bulls Stage a Comeback?
A detailed analysis of Avalanche’s recent price movements reveals a consolidating pattern, with bears seemingly maintaining control. The daily Relative Strength Index (RSI) hovers around the cusp of oversold territory, registering a value of 33.
It’s possible that Avalanche’s price could continue consolidating in a flag formation, awaiting a potential crossover above the 9-day and 21-day moving averages. However, a closer look suggests that the AVAX price might dip towards the $9.5 support level before any upward movement. A weaker $10 support level could trigger a price breakdown. It will lead bears to target subsequent supports at $8, $7, and $6.
Conversely, if a bullish momentum prevails, the price may rally towards resistance levels of $13, $14, and $15.
