- Avalanche price has crashed by more than 87% from its all-time high.
- The coin could drop by another 30% to $12 in the near term.
The Avalanche price is hovering near its all-time low after Bitcoin crashed below the support at $20,000. The AVAX token is trading at $17.54, which is close to the all-time low of $14.52. This price is about 87% below its all-time high, bringing its total market cap to more than $5.1 billion, making it the 17th biggest crypto in the world.
Why is AVAX falling?
Avalanche is a leading blockchain project that seeks to become a viable alternative to Ethereum. Its mainnet was launched in 2020. Since then, it has become one of the most important players in the industry.
Avalanche has better features than Ethereum. For example, it is a proof-of-stake platform that has blazingly fast speeds. For example, it can process more than 4,500 transactions per second (tps). It is also an eco-friendly platform.
Avalanche has been embraced by developers in all industries, including the metaverse, decentralized finance (DeFi), and non-fungible tokens (NFT) among others. Some of the top applications created in Avalanche’s ecosystem are AAVE, Trader Joe, Pangolin, BENQI, and SushiSwap among others.
There are several reasons why the Avalanche price is sliding. First, the decline is part of the overall decline in cryptocurrencies. Bitcoin crashed below $20,000, which is significantly below its all-time high of almost $70,000.
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Second, there are concerns about the key industries that support Avalanche’s ecosystem. For example, its total value locked (TVL) in decentralized finance has crashed from over $11 billion to the current $2.3 billion. Of these $2 billion, Aave has a TVL of over $1 billion. There have been concerns about whether DeFi is dead. The same is true with other key industries like non-fungible tokens and the metaverse.
Still, there are several catalysts that could push the Avalanche price higher. For example, the network recently introduced Chainlink Keepers and a Bitcoin bridge.
Avalanche price prediction
The daily chart shows that the AVAX price retreated sharply in the past few months and is now hovering near its all-time low. The coin dropped below the key support level at $53.51, which was the lowest point on January 22nd. It has moved below the 25-day and 50-day moving averages. It has formed a descending channel that is shown in black.
Therefore, there is a likelihood that the coin will continue falling as bears target the key support level at $12. This price is about 30% below the current level. A move above the resistance at $22 will invalidate the bearish view.
