Will Avalanche extend its declines as weak momentum weighs on price action?

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Avalanche drops 11.2% today to $7.22

Highlights

Avalanche will be used in the New York Stock Exchange’s new digital trading system for tokenized securities, pending regulatory approval.
DeFi deposits on Avalanche through Aave v4 jumped 295% to $225 million in two weeks, but AVAX token prices did not track activity growth.
AVAX trades below short-, medium-, and long-term averages with technical signals showing weak momentum and downside likely within a $6.76 to $8 range.

Institutional adoption advances as DeFi activity rises amid weak price

Ava Labs disclosed on November 9, 2026, that Avalanche will be integrated with a new digital alternative trading system for tokenized securities on the New York Stock Exchange, enabling round-the-clock trading and atomic settlement for U.S. equities and ETFs, as reported by Kucoin. The project, which cost Ava Labs nothing and awaits regulatory approval, reflects growing institutional engagement with Avalanche's blockchain infrastructure. Separately, DeFi deposits for Avalanche on Aave v4 surged by 295% to $225 million over two weeks according to Kucoin, indicating higher protocol activity though this was not mirrored in recent token price movements. Overall, these developments show rising ecosystem utility, though price action has remained under broader selling pressure.

Weak momentum persists as AVAX trades below resistance and averages

AVAX/USD currently trades below the MA-20 ($7.4), MA-50 ($7.91), and MA-200 ($8.09) benchmarks. Immediate resistance is defined by the Ichimoku Kijun at $7.44, while support lies near $6.76. Momentum signals are weak, with MACD at Strong Sell and ADX at Sell. The RSI and CCI are both neutral, but Stoch RSI sits in the overbought zone, suggesting some risk of short-term overheating. Bull/Bear Power has a slightly negative value, underscoring ongoing intraday seller dominance, and the Awesome Oscillator is neutral, reflecting a lack of clear directional momentum.

Downside risk prevails as consolidation likely below resistance

Over the next two to three trading days, AVAX is expected to move within a volatility band of $6.76 to $8. Downside risk remains dominant, with a 70% probability of further declines, while upward movement is seen as less likely barring a clear break above $7.44 resistance. The most probable scenario is for price to consolidate between current support and resistance levels, with any breakout determining the next directional move.

Anton Kharitonov, Traders Union expert, sees strong ecosystem growth signals for Avalanche with institutional partnerships and DeFi activity up, but notes that technical momentum remains negative. He highlights that the recent NYSE integration announcement and rising deposits are not enough to overcome ongoing selling pressure seen across major technical indicators. Base case remains further range-bound movement unless AVAX reclaims resistance at $7.44. "Until there’s a clear breakout above resistance, I stay defensive and avoid chasing early upside here."

Earlier, analysts noted that Avalanche was experiencing sustained selling pressure despite positive institutional developments and strategic treasury actions. The current article reinforces this bearish outlook amid weak momentum signals, highlighting $7.44 as a critical resistance threshold that must be surpassed to shift the prevailing downside risk.

Source of Data: AVAX Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.