Avalanche (AVAX) fell sharply today, dropping 10.15% as the broader crypto market experienced another major downturn. Yet, despite the heavy decline, activity on the network increased. Trading volume surged by 48.43% in the last 24 hours, showing that while sellers dominated, many buyers were also stepping in at discounted prices.
Large-cap cryptocurrencies struggled across the board, but AVAX displayed a slightly different behavior on lower timeframes. This drew more attention to key support areas as well as Bitwise’s latest update to its staking ETF proposal.
AVAX Price Moves Toward the $8.64 Support Zone
The chart shows a steady downward trend, with each attempted bounce creating lower highs. AVAX is currently priced around $12.78, sitting just above a mid-range level known for generating strong reactions in previous cycles. While small recoveries occur, buyers have repeatedly failed to reclaim minor support zones.
The DMI paints a clearly bearish picture.
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–D sits at 35,
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+D remains at 13,
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ADX at 46 confirms a strong, dominant downtrend.
Together, these indicators point to continued market pressure and a low probability of an immediate recovery. The next major support lies at $8.64, a historically powerful accumulation zone. Each retest of this level creates conditions for a potential rebound once price stability forms.
On the upside, the first resistance is at $15.33, followed by a larger recovery ceiling at $20.55. The deeper the drawdown, the more attractive AVAX becomes for long-term buyers seeking strong discount levels and future growth potential.
Bitwise Staking ETF Adds Long-Term Confidence
Bitwise recently updated its Avalanche ETF filing, introducing a staking component that captured significant attention. The proposal allows the fund to stake up to 70% of its AVAX holdings, making it the first U.S. crypto ETF to offer shareholders direct staking yield.
This is a major shift, as traditional ETFs do not distribute crypto-native yield. Bitwise also priced the product at 0.34% per year, a competitive rate compared to similar offerings. The filing includes a projected launch in Q1 2026 on NYSE Arca, giving investors a clear timeline.
Because AVAX is currently far below previous cycle highs, long-term investors may find it attractive—especially with added yield opportunities. Even after accounting for a 12% operational cost, investors could still receive meaningful staking returns.
Staking also reduces liquid supply, tightening the market over time. Analysts highlight this as a potentially bullish structural shift for Avalanche’s long-term price outlook.
Although the market reacted bearishly today, the ETF development lays the groundwork for stronger demand once conditions improve.
Summary
AVAX now trades near a critical level, and a deeper move toward $8.64 could set up a strong accumulation phase. Meanwhile, Bitwise’s staking ETF filing introduces a major new catalyst that may boost long-term demand and reduce circulating supply.
As market conditions stabilize, these factors could support a future recovery. A breakout above the descending resistance line in the coming sessions would be the first sign that AVAX may begin its next rebound phase.
