The price of the cryptocurrency Avalanche, known by the ticker AVAX, has fallen to a critical support level, indicating a potential reversal.
AVAX Price Decline
Since reaching its peak in December, AVAX has plummeted by over 65% to the $20 mark. The recent decline is attributed to worsening overall sentiment in the crypto and stock markets. Key contributing factors include Donald Trump's proposed tariffs and rising concerns about an artificial intelligence bubble burst.
Market Share and Competition
Avalanche is losing market share to newer layer-1 projects like Berachain, Base, Arbitrum, and Sui. The total value locked in Avalanche stands at $1.66 billion, significantly lower than Berachain's $3.1 billion and Base's $2.95 billion. At its peak, Avalanche's assets exceeded $12 billion.
Potential Rebound Opportunities
The technical analysis reveals that AVAX's chart forms a falling wedge, a popular bullish reversal signal. A breakout could lead to resistance at $30. However, a drop below $20 might point to further downside to a $9 support level, its lowest point in 2023.
Despite the current decline, Avalanche retains technical and fundamental recovery prospects. Investors may keep an eye on upcoming developments in the network.
