Avalanche price remains weak as TVL and trading volumes lose momentum
Avalanche remains under pressure as on-chain activity weakens and the ecosystem lacks a new major catalyst. The next test is whether AVAX can reclaim $9.75 before downside risk extends toward $8.90.
After reports that the New York Stock Exchange was testing Avalanche blockchain technology, the project’s news flow has become noticeably quieter. With few fresh ecosystem-specific catalysts emerging lately, AVAX has been left more exposed to broader crypto market sentiment.
On-chain metrics are also pointing to softer activity. As per DeFiLlama, the TVL on Avalanche amounts to about $591.1 million, while the stablecoin market cap has decreased by 7.2% to $1.232 billion within the last seven days. DEX volume within seven days has dropped by 23% to $745.4 million, while the perpetual futures volume has decreased by 8.4% to $152.5 million. The contraction of both stablecoin liquidity and trading volumes indicates weakening demand.

AVAX faces a critical $9.75 test after another failed recovery
Since the previous analysis, AVAX has failed to establish a sustained move above $11.50 and dropped into the $10.50–9.75 target zone, briefly testing the 50-day SMA and a low near $9.26.
The key level for the next several sessions is $9.75. If AVAX can recover above it and hold, the price would have room for another test of $10.50.
Failure to reclaim $9.75 would leave the technical picture considerably weaker. In that case, the risk of a move toward $8.90 would rise sharply, particularly if further weakness triggers liquidations across leveraged long positions.
Broader crypto market weakness keeps volatility risks elevated
With Avalanche-specific news relatively quiet, AVAX is becoming increasingly dependent on the direction of the broader crypto market. Weaker demand for risk assets and sharp swings in Bitcoin and Ethereum can add pressure even when there is no negative development within the Avalanche ecosystem itself.
Volatility is therefore likely to remain elevated over the coming days. Until Avalanche develops a new independent catalyst, short-term price action may be driven largely by broader market sentiment and positioning across derivatives markets.