Avalanche's native cryptocurrency AVAX dropped 8% in the past 24 hours to $27.72, continuing a weekly decline that has wiped out nearly 18% of its value. The decrease coincided with a broader cryptocurrency market downturn that saw ETH, SOL, and DOGE post double-digit losses while BTC fell 6%.
AVAX has faced resistance at the $30.28 level and found minimal support around $27.65. According to CoinDesk Analytics data, trading volume decreased to 121,896 tokens during early Friday trading, indicating that institutional selling pressure might be easing but hasn't reversed direction.
This price decline occurs despite recent corporate initiatives supporting Avalanche's ecosystem. This week, technology company AgriFORCE Growing Systems rebranded as AVAX One and announced plans to raise $550 million for acquiring and holding AVAX tokens. This initiative would make it the first Nasdaq-listed company exclusively focused on Avalanche's ecosystem.
The company established a prominent advisory team featuring SkyBridge Capital founder Anthony Scaramucci and Coinbase Institutional's Brett Tejpaul, positioning itself as a major AVAX custodian. AVAX One aims to hold over $700 million in tokens, attempting to establish itself as a central player in Avalanche's growth narrative.
However, market participants remain unconvinced currently.
The declining price indicates institutional investors may maintain caution regarding Avalanche's long-term prospects. Although regulatory approvals for token-related investment vehicles are pending, they haven't yet generated significant buying momentum.
While Avalanche's development roadmap includes partnerships and enterprise applications, these fundamental factors haven't counteracted the prevailing selling pressure.