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Avalanche (AVAX) Crashes to $80 in 2022: Second Drop to this Support in the Last Two Months

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Avalanche (AVAX) has seen quite a strong growth in the last six months, but even so — its price has seen a lot of struggle, especially over the last two weeks, since entering 2022.

Avalanche price history

Avalanche was launched in September 2020, with its token AVAX starting its journey with a price of $4.1. Over the next several months, its price kept decreasing rather slowly, but also quite consistently. Once the project entered 2021, its price spiked over the next 40 days, hitting $55.3 on February 10th.

After hitting this milestone, the project corrected below $40 and then kept dropping until it reached a support at $25. For the next several months, it used this support as its base from which it made attempts to surge back up. However, the level at $40 became a powerful resistance that prevented it from doing so.

Avalanche made its last attempt to breach this resistance on May 18th, and after it failed, it got caught up in the market-wide price crash that made most coins lose up to 50% of their value. AVAX lost 50% in this initial crash, but it then continued to sink throughout the rest of May and June, bottoming at $10 in mid-July.

On the positive side, this was a turning point for the project, as it is when it started to surge again. Starting on July 10th, AVAX climbed up to $20, although it did it slowly, over the course of the next four weeks. After reaching this level on August 16th, it skyrocketed back to $60 in only a week.

Its price did get rejected again, however, but this time, a support at $40 stopped its fall, allowing it to surge up once again after a short break, and reach nearly $80 in mid-September.

Once again, Avalanche price corrected, causing the coin to drop to big support, which was $60 this time, and after a brief period, AVAX skyrocketed to establish a new, and for the time being its last, all-time high at $135 around November 22nd.

A volatile holiday season

Following AVAX’s rise to the top, the coin’s price once again had to correct. However, what followed was a correction mixed in with another market-wide price crash that caused Bitcoin, Ethereum, and pretty much all altcoins to suffer another major drop. AVAX was no exception, and while it originally managed to stop at the support at $100, and even recover to $120 briefly, it eventually lost its strength, and its price crashed to $80.

Avalanche found its new bottom here on December 13th, and as Christmas was approaching, the crypto industry saw another bullish wave that started taking the prices up. Now, a year earlier, in December 2020, the crypto sector started seeing a massive price surge, that eventually grew into the largest bull run that we have seen to date. So, naturally, many assumed that the same will happen this time, as well, and that the drop that was seen less than a month prior was just another correction.

Encouraged by this, investors started buying, and AVAX prices skyrocketed again as the holiday season approached. Avalanche skyrocketed from $80 to $125.91 on December 22nd. After that, its price saw a minor correction to $120, and AVAX started using this support to try a few more attempts at breaching the $125 level over the next few days. Things started going wrong on December 25th, the Christmas day itself, where the support at $120 broke, taking Avalanche down to $115.

After that, the coin tried rallying up to $120 again, but as soon as it reached, it crashed to $110. After making another attempt on December 28th, it crashed even further down, breaking one support after another until it dropped back to $100 on December 30th.

The holiday hype that hit before Christmas started to return for New Year’s, and AVAX — more than willing to grow — took this opportunity to go back up.

AVAX price in 2022

AVAX price ended 2021 and entered 2022 with the value of exactly $110, as it continued its growth. The coin even managed to keep pushing up for the next two days, and it reached its peak at $117. This was still quite a bit below its ATH, but at this moment, it represents the coin’s highest point on the YTD chart.

However, after reaching this level, Avalanche’s price started crashing down. For an entire week filled with small ups and downs, AVAX continued to be dominated by the bearish trend, which forced it deeper and deeper until it reached its bottom at $80 on January 8th.

After dropping so low, AVAX made an attempt to grow but was briefly stopped by a resistance at $85. It managed to breach it eventually by using a smaller support at $84, and from there on, it kept pushing up towards a resistance at $90. This one did not break, and instead, it pushed the coin back down towards its support at $80.

After dropping back down, AVAX started growing once again, this time on January 10th, and this time — it managed to climb all the way up to $96. The coin hit this barrier late on January 12th, and it spent the next day or so trying to breach it. However, come January 13th, the resistance managed to reject Avalanche and push it back down to a smaller support at $88. Not quite where it started this time, AVAX spent the next three days slowly pushing its way back up, until it reached $94.79 on January 16th.

Finally, this milestone was marked by one last drop of 4%, which took place over the last 24 hours. It brought AVAX back to $89, and at the time of writing (January 17th), Avalanche is once again trying to break the resistance at $90, and go back up.

Conclusion

Avalanche is an interesting project, and supposedly one of the fastest smart contract platforms in the industry. With Ethereum losing people due to its slow speeds and high gas fees, Avalanche and a handful of others became highly attractive to developers and users alike. Especially those who wish to engage in DeFi, metaverse, NFTs, and other major trends that rule the industry right now.

Avalanche is quite popular, too, taking every single opportunity to grow with quite a bit of enthusiasm. In other words, it has a strong community that is ready to push its coin up. Unfortunately, the market conditions are not as friendly as the crypto community hoped it to be in early 2022, hence the common price drops and recoveries that are trying to nullify the damage.

The market is very volatile right now, and if the situation changes and the bulls at least neutralize the bears, it is likely that AVAX price will skyrocket back to $100, possibly higher. However, for as long as the market is trading in the red, Avalanche cannot go against it on its own.

Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.

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