Is Avalanche Going to Zero? AVAX Price Suffers 8% Fall as New Mining Protocol Raises $2.4 Million
Layer-1 blockchain Avalanche has seen native AVAX price tumble -8% in an ongoing retracement following a local rally top, but with price pushing down is Avalanche going to Zero?
The impressive Avalanche rally has seen price climb +180% rapidly over the past month after being triggered by the fleeting popularity of the Friend.Tech SocialFi project, until price action stalled at a local top of $24.78.
Much of recent price accrual has been driven by a significant uptick in inscription activity on the Avalanche blockchain.
Similar in operation and function as Bitcoin’s layer-2 ordinals scaling solution (BRC-20 token standard), inscription minting has seen more than 300k AVAX burned on-chain in the past two days.
As Avalanche fights to consolidate after the retracement move, AVAX is currently trading at a market price of $21.52 (representing a 24-hour change of +3.26%).
The sudden -8% price tumble was followed by stalled rally price action around topside resistance below the $24 price level.
In the past 12-hours price action has began to find feet, with an emerging level of local support at $20.75 offering relief for AVAX bulls.
Now attempting consolidation, the strong technical structure of the AVAX price rally remains unbroken, and AVAX seems likely to cement recent gains here.
However, now in the top of the trading channel below a tough layer of localized resistance, attention shifts to the 20DMA – which remains lagging behind the current heights of price action at $16.85.
This critical moving average provided support to much of the early structure of AVAX’s upside move, and remains in a significant supply zone that has emerged between $15.60 and $18(forming lower support).
Meanwhile the 200DMA remains low at $12.30, but finally
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