Avalanche Token Price Plummets Amid Bearish Market Sentiment

Avalanche's token price dropped by 4.91% in the past 24 hours, one of the largest declines among top 35 cryptocurrencies by market capitalization according to CoinMarketCap data.

The decline coincided with an increase in Open Interest, even as prices fell below the $6.50 local support zone, and spot CVD declined noticeably along with funding rates slipping into negative territory.

The bearish sentiment is a continuation of previous struggles for Avalanche bulls, who have been unable to break above $7 despite a 20x surge in daily transactions on-chain.

Bitcoin's fall below the $65.5k local support zone and trading below $65k also contributed to the bearish market sentiment shift that could drag AVAX further down.