by Aima Raza
Avalanche (AVAX) displays the initial indicators of a market recovery following its three-month price decline. Markets monitor essential support areas plus network advances to predict if AVAX can start rising.
Trading expert Marzell posted on X for 37.600 followers about AVAX testing an important support area between $15 and $20. Based on his analysis he predicts that AVAX will climb to $43.84 once it maintains current support levels and ends the week above $30.
The cryptocurrency can move higher from $58.06 up to $80.03 after testing these levels. Trader Kaleo noticed an asset accumulation activity that mirrored a similar trend from previous November yet led to a price surge of 125%.
Avalanche Faces Continued Bearish Pressure
This March 7 Asian report shows AVAX trading at $20.64 and possessing $8.5 billion worth of market value plus $538 million daily exchanges . The token continues trading 85.8% lower than its peak of $144.96 on November 23, 2021. Several factors exist that could help Avalanche’s price recover despite its 61% decrease since the 9th of December.
Avalanche CEO Emin Gün Sirer joining the White House Crypto Summit makes investors think AVAX will be part of government-backed crypto projects. According to investors Avalanche supports pro-cryptocurrency policies because its parent company Ava Labs maintains its headquarters in New York while Trump promotes American-made products.
Time to find my suit and see if I still fit into it.
— Emin Gün Sirer🔺⚔️ (@el33th4xor) March 6, 2025
The Avalanche community is making technical plans to integrate Balancer V3 into its system which brings new automated market maker functions. The community vote regarding this integration has not ended yet and continues until March 11, 2025.
Avalanche Expands Real-World Utility
Avalanche increases its usefulness in everyday life situations by expanding its asset tokenization efforts. Current DeFiLlama figures recognize Avalanche as the seventh highest cryptocurrency network in DEX exchange volume which gained 18% weekly to reach $1.345B. Locally in India the government of Gurgaon picked Avalanche’s blockchain to convert 700,000 land documents into digital assets which proves its modern practical use cases.
"By digitizing these records and securing them on blockchain, we have ensured they are easily accessible and cannot be tampered with.”
The @DantewadaDist of Chhattisgarh, India, has digitized all 700k of their land records on Avalanche. https://t.co/gpC72k6qyo
— Avalanche🔺 (@avax) March 6, 2025
According to Santiment data AVAX’s market sentiment has become more positive among users since early this week as they regain optimism. The technical tools point to ongoing decline for AVAX because the token has not escaped its downward movement yet.
AVAX moves downward on the 1-day USDT chart as it fails to leave behind the downward trendline from Jan. 18. The MACD and signal line stick together below price marks to show a period of stability. Strong selling pressure dominates the market because both Aroon Up and Aroon Down indicators show the trend moving lower at 78.5% and 0% respectively.
Avalanche needs major market mood changes to escape its current price decline. The price of AVAX fell 6.5% yesterday and reached $20.50 when this report was being written.
#blockchain #crypto, #decentralized, #distributed, #ledger
