The AVAX price has crashed to a crucial support level after falling by 72% from its highest point in November as traders wait for the upcoming Avalanche Granite upgrade.
Summary
- Avalanche price has tumbled to a crucial support level this month.
- The network will activate the Granite upgrade this week.
- Technical analysis suggests that it has more downside if it loses this support.
Avalanche to activate Granite upgrade
Avalanche (AVAX) token was trading at $15.67, a key support it has failed to move below several times since March this year. Its plunge from its highest point in November has brought its market capitalization from $13 billion to $6.7 billion.
Avalanche price will be in the spotlight this week as the network upgrades the Granite mainnet, which has been in the Fuji testnet in the past few months.
Granite is one of the most important upgrades in its history as it introduces key features. It will improve cross-chain messaging, introduce biometric authentication support, and enable dynamic block times for faster transactions.
The Granite upgrade, which comes on November 19, comes at a time when the Avalanche network is growing. Data compiled by Nansen shows that the number of transactions has soared by 102% in the last 30 days to 63 million. Its users also jumped by about 7% to over 719,340.
Still, like other networks, Avalanche is also facing some major headwinds as the crypto market crash continues. Data shows that the stablecoin supply in the last seven days dropped by 2.52% in the last 7 days to $2.15 billion.
More data shows that the DEX volume in the network has dropped to $108 million, down from this month’s high of $407 million. Also, the total value locked in Avalanche has dropped to $2.05 billion, down from the year-to-date high of $3.51 billion. AVAX’s funding rate and weighted open interest have also pulled back in the past few months.
AVAX price technical analysis
The daily timeframe chart shows that the AVAX price has crashed from a high of $36 in October to the current $15.25. It has settled at a crucial support where it has failed to move below since March 10.
The current price is along the weak, stop & reverse point of the Murrey Math Lines. It also formed a death cross pattern as the 50-day and 200-day Exponential Moving Averages have flipped each other.
Therefore, a move below the support at $15.26 will point to more downside, potentially to the ultimate support at $12.50. On the other hand, a rebound could see it retest the Major S/R pivot point at $25.