AVAX Price Faces Critical Test at $7 as Market Sentiment Wavers
The price of AVAX has taken a hit due to the recent sell-off in the crypto market, which was triggered by the failure of the U.S. Senate to advance the Digital Asset Market Clarity Act. The bill's defeat led to a decline in sentiment around recovering altcoins, causing the AVAX price to drop back to an important level.
The $7 support level is crucial for the broader rally that started in June 2023 to remain intact. If this support holds, the token could continue its upward momentum, but if it breaks below $7, the structure of the chart would become bearish, exposing AVAX to a sharp decline.
A similar move to the one seen in May 2023 cannot be ruled out under this scenario, with levels as low as $5 or even lower coming into view. However, if buyers regain control and push the price above $7, the next key resistance levels would be $8.50 and $10.00.
Meanwhile, Avalanche is expanding its DeFi ecosystem by introducing permissionless tokenized stocks to its network. Pharaoh will bring 24/7 trading of tokenized U.S. stocks to its decentralized exchange built natively on Avalanche, providing traders with another way to access U.S. equities on-chain.