AVAX dropped almost 14% after Israel’s strike on Iran, more than most crypto assets, as bearish technicals prevailed.
Altcoins have taken a beating after Israel’s attack on Iran stoked fears of a broader Middle Eastern conflict. On Friday, June 13, Avalanche (AVAX) dropped more than 14%, to a daily low of $18.53. The token later stabilized at around $19, but still posted a daily decline of 9.75%.
Avalanche was just one of the altcoins that dropped as risk-off sentiment prevailed in the markets. Rising oil prices, which are fuelling inflation fears, are making traders flee to safe-haven assets. However, Avalanche’s declines were worse than the average, with just 23 out of the top 100 tokens seeing a worse drop.
A part of the reason was weak technicals, especially a long-term bearish pattern that formed in 2024. AVAX price formed a double-top pattern at $55.20, and subsequently crashed below $15. This pattern suggests that the price will face significant resistance before it can regain its previous levels.
AVAX price chart | Source: crypto.news
What is more, AVAX is still trading within the bearish flag pattern, near the lower boundary of its rising channel. Its price is currently below all key simple and exponential moving averages, showing that momentum is not in its favor.
What’s next for AVAX?
Despite the bearish technicals, Avalache has seen some positive ecosystem news in the past few weeks, which signals a positive long-term outlook. For one, the network has hit a number of milestones when it comes to usage.
The network hit an all-time high in gas usage, at 2.6 trillion, an ATH in daily transactions at 18.1 million, and a record number of transactions per second. This aligns with a broader trend of a steady increase in adoption. It also proves the network’s scalability and ability to process large volumes.
