• AVAX drops over 7% in 24 hours, extending weekly losses.
• Market activity surges despite falling capitalization.
• Visa expands stablecoin settlement to the Avalanche network.
• Technicals suggest a potential rebound from oversold levels.

Avalanche (AVAX) is experiencing a notable decline in price movement as bearish momentum strengthens. Over the last 24 hours, the token has dropped by nearly 7.18%, extending its weekly losses to around 18.11%. This decline comes after a period of heightened volatility, with traders locking in profits from previous gains.

At the time of writing, Avalanche is trading at $16.92 with a 24-hour trading volume of $726.25 million, which has increased by 188.13%. Despite strong trading activity, AVAX’s market capitalization has fallen by 7.2% to $7.22 billion, signaling stronger selling pressure despite elevated market participation.

Also Read: Avalanche (AVAX) Eyes $31 as TIS Integration Boosts Institutional Adoption

Visa Partnership Strengthens Avalanche’s Real-World Use

Visa’s recent decision to expand its stablecoin settlement network to include Avalanche (AVAX) highlights the growing trust in the blockchain’s speed, scalability, and security. This move positions Avalanche as a crucial part of the global payment infrastructure, strengthening its role in real-world financial applications and enhancing market confidence.

As stablecoins and on-chain payment systems continue to evolve, Avalanche’s efficient and reliable ecosystem could attract more institutional adoption. This increasing integration with mainstream financial activities is expected to fuel the adoption of AVAX, which will result in a probable rise in the price of the token in the forthcoming days as investors understand the long-term utility of AVAX in fueling next-generation payment systems.

Technical Outlook Points to Possible Recovery Zone

From a technical analysis perspective, AVAX is still under pressure as it has been showing weakness since breaking the 20-day simple moving average of $23.79. AVAX is currently orbiting around the Lower Bollinger Band of $15.18, indicating that the token is in the oversold region. Key support is near $15.00, while immediate resistance lies around $20.00 to $23.00.

The RSI stands at 39.35; the momentum is weakening, but at the same time, a point of reversal is expected soon. Again, if the RSI touches around 30, the buying interest will trigger a move towards higher prices. However, the confirmation of bearish strength from the MACD is ongoing. A bullish crossover may signal the beginning of a probable recovery. A breakout above $23.00 will signal a continuation of buying momentum, leading the way towards the target of $32.40.

Overall, since AVAX is still in a short-term correction process, the technical analysis suggests that a stabilization phase is not far off. If the support level is sustained above $15.00, a recovery towards higher resistance levels is likely in the coming sessions.

Also Read: Avalanche (AVAX) Set for Comeback: Analyst Sees Rally Toward $21.24!