- On Monday, Avalanche (AVAX) price fell nearly 3% on the daily chart, forcing its value to fall from $9.46 to $9.18 with a market cap of about $3.96 billion.
- The declines come amid intense selling pressure in the DeFi sector due to unfortunate events and a correction in the Bitcoin (BTC) price as it fell below $77,000.
- The price is falling towards a major resistance level at around $9.0, and if it drops below this level, it could open the door towards $8.50.
On April 27, Avalanche (AVAX) price saw a decline of about 3% on the daily chart following catastrophic events in the DeFi sector and selling pressure on the cryptocurrency.
Avalanche (AVAX) price is hovering around the $9 support level
On Monday, the overall cryptocurrency market faced a correction after Bitcoin (BTC) fell below $77,000 following a collapse in leveraged derivatives positions. according to QuinglassBitcoin liquidation rose to $429.10 million. , including $284.87 million in long positions and $144.23 million in short positions. This has created a risk averse sentiment in altcoins.
Avalanchefax-3.11% It follows its correlation with Bitcoin after falling by about 3%. At the time of writing this, Avalanche price is hovering around $9.17 Down 2.87% in the last 24 hours CoinMarketCap. The cryptocurrency still has a staggering market cap of around $3.96 billion. Daily trading volume is about $217.23 $1 million, which rose about 51% on the daily chart.
Aside from the liquidation in the cryptocurrency market, there is significant selling pressure on Avalanche. Daily trading volume is about $217.23 $1 million, which rose about 51% on the daily chart. This is more than recent averages. This rally during a decline in AVAX suggests that sellers are exiting their positions with real conviction rather than fleeting order book activity.
This decline follows a derivatives flow trend that has affected several altcoins in a linked pattern.
According to the price chart on TradingView, the 14-day RSI is at around 36, indicating that the cryptocurrency is currently in a critical situation. Neutral to weak downtrend without entering overbought or oversold areas.
Meanwhile, the 50-day moving average remains around $9.42 while the short-term averages are hovering around $9.35. Both act as immediate resistance levels. There is a major psychological support level at around $9. If AVAX price breaks below this level, it could open the door towards the next support area, $8.50. For this reason, it is important for Bitcoin to maintain its position above $76,500.
On-chain data also indicates consistent activity on the Avalanche blockchain. According to DeFiLIama, the total value locked across its DeFi protocols is around $656.65 million after a daily gain of 1.69%.
AVAX now faces a short-term outlook based on key technical levels and… Bitcoin direction. If the price can maintain its position above $9, it may consolidate in a narrow range while waiting for the next upward momentum.
However, Avalanche may see growth in institutional investment and adoption in the real world. Bitwise has launched its first Avalanche ETF under the symbol BAVA on the New York Stock Exchange, with plans to acquire a portion of the holdings.
Aside from this, AVAX One, a token-focused Nasdaq-listed company, reported first-quarter revenues that doubled to $2.4 million, boosted by staking rewards and Bitcoin mining operations. Along with this, the network secured a $200 billion real estate tokenization deal in New Jersey and expanded partnerships for music royalties and enterprise affiliate networks.
The DeFi sector is going through its worst phase, as successive cyber attacks have reduced overall market confidence and created downward pressure on assets such as ghost.
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