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AVAX Tests 52-Week Lows as Granite Upgrade Fails to Lift Price Above $14.50
The Avalanche (AVAX) token is currently trading at a crucial juncture, having fallen to its lowest levels since November 2024. Despite the recent Granite upgrade, which aimed to bolster the platform’s scalability and security, the price has failed to lift above $14.50, instead testing yearly lows.
In this analysis, we will explore the factors contributing to AVAX’s underwhelming performance and examine potential scenarios for the token in the near term.
AVAX Price Struggles Despite Upgrade
The Granite upgrade, which took effect on November 19, aimed to accelerate Avalanche’s growth by introducing dynamic block times and FaceID-compatible authentication. However, this critical technical milestone failed to generate a positive response from the market.
Instead of sparking renewed optimism, the update was met with a lackluster reception, resulting in a 6% price decline to $13 lows. This stark contrast highlights the bearish sentiment pervading crypto markets, rendering AVAX’s momentum disconnected from broader market trends.
Oversold RSI Conditions Create Potential for Bounce
While AVAX is currently trading near its 52-week lows, the token’s oversold RSI reading of 30.06 may facilitate a brief bounce toward $16-18. This short-term rebound would be fueled by traders seeking to capitalize on undervalued conditions.
In this scenario, it is crucial that investors maintain realistic expectations and position sizing, considering the heightened volatility and risk involved with trading in the current market landscape.
Bearish Case Sees Token Fall Further
On the other hand, failure to hold support at $13.71 would open a clear path to the strong support zone of $8.52, resulting in a further decline.
This scenario is more likely if Bitcoin’s correlation breakdown persists and broader crypto markets continue their downward trajectory. Additionally, institutional recognition of the Granite upgrade benefits may be delayed, exacerbating bearish sentiment.
Risk Management Strategies for AVAX Traders
As AVAX navigates this critical period, conservative traders are advised to set stops below $13.50 to minimize exposure to potential losses.
Conversely, momentum traders can attempt to capitalize on a breakout above $15.49 resistance by positioning themselves for potential upside, taking into account the elevated 14-day ATR of $1.33 and expected daily volatility.
Conclusion
In conclusion, AVAX’s performance following the Granite upgrade has been lackluster, failing to inspire confidence in the token’s near-term prospects. As traders weigh their options, it is crucial to maintain a clear perspective on risk management strategies and market expectations.
The article is based on data provided by Blockchain News, a comprehensive AI-powered platform for AI, cryptocurrency, blockchain news and updates, covering all aspects of decentralized finance (DeFi), NFTs, Metaverse, etc.
Source: Blockchain.News
