Avalanche AVAX token symbol cryptocurrency in the center of spiral of glowing dots on dark background. Cryptocurrency logo icon for banner or news. Vector illustration.
The Avalanche price has struggled in the past few days. AVAX, the native token, is trading at $93.70, which is about 40% below its all-time high. As a result, its total market capitalization has declined to $22 billion, making it the 11th biggest cryptocurrency in the world.
Why did AVAX decline?
Avalanche is a leading Ethereum-killer that became popular among developers and investors in the third quarter of 2021. As a result, the price jumped by more than 1,700% from the lowest level in August to the highest point in November.
The Avalanche price has reversed recently even as the ecosystem has grown. For example, according to DeFi Llama, there are now 129 DeFi projects built using Avalanche’s network. These platforms have a combined total value locked of more than $11.3 billion, making it the fourth-biggest platform in the world.
This decline is mostly because of the change of tone by the Federal Reserve. In November, the Fed started winding down its asset purchases by $15 billion. It then boosted its tapering by $30 billion. And in the minutes published on Wednesday, the bank hinted that it will move more aggressively to hike interest rates.
Avalanche price prediction
The daily chart shows that the AVAX price has been in a bearish trend in the past few weeks. Subsequently, the Avalanche price has moved below the 25-day moving average and the 38.2% Fibonacci retracement level.
The coin also seems like the coin has formed a double-top pattern while the MACD has moved below the neutral level.
Therefore, there is a likelihood that the Avalanche price will likely keep falling as bears target the chin of the double-top pattern at $74.65. On the flip side, a move above the resistance at $115 will invalidate the bearish view.