AVAX Drops 8% Amid Broader Crypto Market Decline

Avalanche’s native token AVAX experienced an 8% decrease over the last 24 hours, bringing its price to $27.72. This decline extends a weeklong trend that has resulted in a nearly 18% reduction in value. The drop coincided with a significant downturn in the crypto market, which has seen ETH, SOL, and DOGE also record double-digit percentage drops this past week, while BTC fell by 6%.

Contents

Current Market Position and Trading Volume

AVAX has faced challenges in breaking through a resistance level of $30.28 and is currently experiencing only weak support around $27.65. According to CoinDesk Analytics, early trading on Friday revealed that trading volume plummeted to 121,896 tokens. This indicates that while institutional selling may be slowing down, it hasn’t yet seen a reversal.

This price decline occurs amid corporate initiatives aligned with Avalanche that aim to enhance institutional engagement. Earlier this week, the tech firm AgriFORCE Growing Systems announced its rebranding to AVAX One and unveiled plans to raise $550 million to acquire and hold AVAX. If successful, this would make it the first Nasdaq-listed company dedicated exclusively to Avalanche’s ecosystem.

To strengthen its position, the firm has assembled a notable advisory team, which includes SkyBridge Capital founder Anthony Scaramucci and Brett Tejpaul from Coinbase Institutional, aiming to establish itself as a significant custodian of AVAX. AVAX One’s goal is to hold over $700 million in the token, aiming to solidify its role as a key player in the growth trajectory of Avalanche.

However, the market response has yet to reflect this optimism.

The ongoing price decline indicates that institutional investors may still harbor reservations about Avalanche’s long-term outlook. Although regulatory approvals for token-related instruments are pending, they have not yet led to increased buying momentum.

While Avalanche’s roadmap features partnerships and enterprise use cases, these fundamentals haven’t yet managed to offset the prevailing selling pressure.