AVAX price plummeted to a crucial support level after falling 72% from its November high as traders await the next Avalanche Granite upgrade.
Summary
- Avalanche price has fallen to a crucial support level this month.
- The network will activate the Granite update this week.
- Technical analysis suggests that it is further downside if it loses this support.
Avalanche to activate the Granite upgrade
Avalanche (AVAX) token was trading at $15.67, a key support below which it has failed to drop several times since March of this year. Its decline from its peak in November has taken 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 on the Fuji testnet in recent months.
Granite is one of the biggest updates ever, introducing key features. It will improve cross-chain messaging, introduce biometric authentication support, and enable dynamic lock times for faster transactions.
The Granite update, arriving on November 19, comes at a time when the Avalanche network is growing. Data collected by Nansen shows that the number of transactions has shot up 102% in the last 30 days to 63 million. Its users also increased by approximately 7% to more than 719,340.
Still, like other networks, Avalanche also faces significant obstacles as it crypto market crash continue. The data shows that the stablecoin supply in the last seven days fell by 2.52% in the last 7 days to $2.15 billion.
More data shows that DEX volume on the network has fallen to $108 million, down from this month’s high of $407 million. Additionally, the total value locked in Avalanche has fallen to $2.05 billion, below the year-to-date high of $3.51 billion. AVAX’s funding rate and weighted open interest have also retreated in recent months.
AVAX Price Technical Analysis
The daily time chart shows that AVAX price has plummeted from a high of $36 in October to the current $15.25. It has settled on a crucial support from which it has not been able to descend since March 10.
The current price is located along the weak, stop and retracement point of the Murrey mathematical lines. It also formed a death cross pattern as the 50-day and 200-day exponential moving averages inverted into each other.
Therefore, a move below the $15.26 support will point to further downsides, potentially to the final support at $12.50. On the other hand, a bounce could see it retest the Major S/R pivot point at $25.
