Avalanche Price Drops 3% Following Correction in Bitcoin
On April 27, the Avalanche ($AVAX) price experienced a drop of around 3% on a daily chart following catastrophic events in the DeFi sector and selling pressure on the cryptocurrency.
Avalanche ($AVAX) Price Revolves Around $9 Support Level
On Monday, the overall cryptocurrency market faced a correction after Bitcoin (BTC) slipped below $77,000 following a crash in leveraged derivatives positions. According to Coinglass, Bitcoin liquidation surged to $429.10 million. , including $284.87 million in long positions and $144.23 million in short positions. This has created risk-off sentiment in the altcoins.
Avalanche$AVAX-3.11% is following its correlation with Bitcoin after dropping around 3%. At the time of writing this, the Avalanche price is hovering around $9.17 with 2.87% drop in the last 24 hours, according to CoinMarketCap. The cryptocurrency still holds an impressive market capitalization of around $3.96 billion. The daily trading volume revolves around $217.23 million, which soared by around 51% on a daily chart.
Apart from the liquidation in the crypto market, there is heavy selling pressure on Avalanche. The daily trading volume revolves around $217.23 million, which soared by around 51% on a daily chart. This is more than recent averages. This spike during the drop in $AVAX suggests that sellers are exiting positions with real conviction rather than fleeting order book activity.
This drop follows the trend of derivatives flush that affected many altcoins in a correlated pattern.
According to the price chart on TradingView, the 14-day Relative Strength Index is sitting at around 36, which suggests that the cryptocurrency is currently in a neutral-to-weakly bearish trend without entering into overbought or oversold territories.
At the same time, the 50-day moving average stays around $9.42 while shorter-term averages revolve around $9.35. Both are working as immediate resistance levels. There is a major psychological support level at around $9. If the $AVAX price breaks below this level, then it could open the door toward the next support area, $8.50. For this, it is important for Bitcoin to hold its position above $76,500.
The on-chain data is also suggesting steady activity on the Avalanche blockchain. According to DeFiLIama, total value locked across its DeFi protocols is revolving around $656.65 million after a 1.69% daily gain.
$AVAX is now facing a short-term outlook that depends on major technical levels and Bitcoin direction. If the price manages to hold its position above $9, it may consolidate in a tight range while waiting for the next bullish momentum.
However, Avalanche might see a growth in institutional investment and real-world adoption. Bitwise launched the first Avalanche ETF under the ticker BAVA on the New York Stock Exchange, complete with plans to stake a portion of holdings.
Apart from this, $AVAX One, a Nasdaq-listed firm focused on the token, reported first-quarter revenue that more than doubled to $2.4 million, supported by staking rewards and Bitcoin mining operations. Along with this, the network secured a $200 billion real estate tokenization deal in New Jersey and expanded partnerships for music royalties and enterprise subnets.
The DeFi sector has been going through its worst phase, where back-to-back cyber attacks have reduced overall market trust and created downward pressure on assets like AAVE.