Avalanche (AVAX/USD) has lost 90% of its value since its November 2021 high.Tokens are falling alongside other majors Cryptocurrency in a bear market. Bearish momentum is still high and the cryptocurrency is trading at $15. Over the past week, AVAX has lost more than 5% of his, heading towards $10. what’s happening?
Avalanche is being touted as an Ethereum alternative platform for DeFi and NFT. However, this year he saw two nascent blockchain sectors take a hit. Data from Dune Analytics shows that weekly trading volume for NFTs has plummeted by 98% this year. His total trading volume at the end of January 2022 was $6.2 billion and is now at $114.
The decline of NFTs and DeFi has hit blockchains like Avalanche hard. That’s because blockchain has put a name around the evolving sector. Therefore, it may take some time for investors to come back, suggesting a prolonged bear market. Looking at the recent declines, the bears are dominating his AVAX, which could lead the price down.
AVAX price outlook amid weakening momentum
Source TradingView
The daily chart shows AVAX trading on a low system with weak lows and highs. The MACD indicator is deep in the bearish zone.
At current levels, AVAX is trading at a potential pivot point. However, the momentum is weak, giving the bears an opportunity to drag the cryptocurrency down.
What’s next for AVAX?
Given the weak momentum, we view AVAX’s reversal chances at $15 as very low.cryptocurrency is buy Find support at $10 as the drop is likely to continue.
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