Very few analysts are talking about the massive weakness in Avalanche (AVAX) price. After making fresh 52-week lows in September 2023, the price had a strong rebound, but the bulls couldn’t capitalize. As a result, the smart contract coin is once again targeting the yearly lows.
Avalanche price is trading 32% below its 200 MA on the daily chart, which indicates a strong downtrend. The coin plummeted 3% on Thursday in its sixth consecutive red day. While the recent drop could be attributed to the bearish BTC price action, it also has to do with the decreased investor interest in the project.
DeFi Llama tracks the total value locked (TVL) in the smart contracts across different blockchains. According to the most recent stats, the TVL on Avalanche blockchain has plummeted 37.4% since the start of 2023. This TVL decrease could be due to the downtrend in the Avalanche price during the same time.
The Avalanche ecosystem has recently experienced multiple hacks. Last week, a Friend.Tech clone known as Stars Arena was hacked for $3 million. However, according to recent reports, 90% of the stolen funds have been recovered as the hacker was offered a 10% bounty.
Avalanche Price Prediction Flips Bearish
The most critical level on the following AVAX crypto chart is the $9.5 level, which was the July 2022 low for the digital asset. Currently, the price has broken below this level and is targeting the September 2023 low of $8.61. The price action is also forming a pattern, which is known as a falling wedge in the trading circles.
It goes without saying that Avalanche price prediction is looking extremely bearish at the moment. A breakdown below $8.5 may take the price below $3, where lies the next major support on the daily chart. To avoid this outcome, bulls need to push the price above $9.5 soon.