- On Monday, Avalanche (AVAX) price plunged by approximately 3% on a daily chart, forcing its value to plunge from $9.46 to $9.18 with a market capitalization of around $3.96 billion.
- The drops come amid the heavy selling pressure in the DeFi sector due to unfortunate events and a correction in Bitcoin (BTC) price as it slips below $77,000.
- The price is falling towards a major resistance level at around $9.0, and if it falls below this level, it could open doors toward $8.50.
On April 27, the Avalanche (AVAX) price experienced a drop of around 3% on a daily chart following catastrophic events in the DeFi sector and selling pressure on the cryptocurrency.
Avalanche (AVAX) Price Revolves Around $9 Support Level
On Monday, the overall cryptocurrency market faced a correction after Bitcoin (BTC) slipped below $77,000 following a crash in leveraged derivatives positions. According to Coinglass, Bitcoin liquidation surged to $429.10 million, including $284.87 million in long positions and $144.23 million in short positions. This has created risk-off sentiment in the altcoins.
AvalancheAVAX2.36% is following its correlation with Bitcoin after dropping around 3%. At the time of writing this, the Avalanche price is hovering around $9.17 with 2.87% drop in the last 24 hours, according to CoinMarketCap. The cryptocurrency still holds an impressive market capitalization of around $3.96 billion. The daily trading volume revolves around $217.23 million, which soared by around 51% on a daily chart.
Apart from the liquidation in the crypto market, there is heavy selling pressure on Avalanche. As stated above, the daily trading volume is hovering around $217.23 million, which has been up by 51% in the last 24-hours. This is more than recent averages. This spike in trading volume during the drop in AVAX suggests that sellers are exiting positions with real conviction rather than fleeting order book activity.
This drop follows the trend of derivatives crash that affected many altcoins in a correlated pattern.
According to the price chart on TradingView, the 14-day Relative Strength Index is sitting at around 36, which suggests that the cryptocurrency is currently in a neutral-to-weakly bearish trend without entering into overbought or oversold territories.
At the same time, the 50-day moving average stays around $9.42 while shorter-term averages revolve around $9.35. Both are working as immediate resistance levels. There is a major psychological support level at around $9. If the AVAX price breaks below this level, then it could open the door toward the next support area, $8.50. For this, it is important for Bitcoin to hold its position above $76,500.
The on-chain data is also suggesting steady activity on the Avalanche blockchain. According to DeFiLIama, total value locked across its DeFi protocols is revolving around $656.65 million after a 1.69% daily gain.
AVAX is now facing a short-term outlook that depends on major technical levels and Bitcoin direction. If the price manages to hold its position above $9, it may consolidate in a tight range while waiting for the next bullish momentum.
However, Avalanche might see a growth in institutional investment and real-world adoption. Recently, Bitwise launched the first Avalanche ETF under the ticker BAVA on the New York Stock Exchange, complete with plans to stake a portion of holdings.
Apart from this, AVAX One, a Nasdaq-listed firm focused on the token, reported first-quarter revenue that more than doubled to $2.4 million. This is supported 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 subnets.
The DeFi sector has been going through its worst phase, where back-to-back cyber attacks have reduced overall market trust and created downward pressure on assets like AAVE.
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