AVAX Price Collapse Threatens Avalanche Treasury's Viability
- Financial Health Crisis: Avalanche Treasury Corp has issued a warning about potential operational collapse by year-end due to the plummeting AVAX prices, leading to liquidity constraints and significant losses, with market capitalization now below $30 million.
- Severe Asset Devaluation: The firm once held nearly $1 billion in AVAX reserves, but aggressive market downturns have reduced this to just $123 million, resulting in a quarterly loss exceeding $26 million and severely eroding its asset base.
- Stock Price Plummet: Following its SPAC merger, the stock price has fallen from over $10 to $0.73, with market value slashed by over 90% within a month, raising strong skepticism among investors regarding the viability of AVAX-dependent financial strategies.
- Collateral Risk Intensification: Approximately 7.8 million of the company's 13.8 million AVAX tokens are leveraged as loan guarantees, increasing exposure to adverse price movements, which exacerbates the ongoing financial tensions as AVAX prices continue to decline.
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Technical Analysis for AVAX
Technical Sentiment Analysis for Avalanche (AVAX). As of , Avalanche (AVAX) is exhibiting a Strong sell technical sentiment. Our proprietary analysis, which aggregates 7 technical signals, shows that 1 indicators are flashing buy, while 6 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for AVAX stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.
Support, Resistance & Moving Averages. From a structural perspective, AVAX is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Avalanche (AVAX) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 4.957 | 5.456 | 6.038 | 6.537 | 7.119 | 7.618 | 8.2 |
| Fibonacci | 5.456 | 5.869 | 6.124 | 6.537 | 6.95 | 7.205 | 7.618 |
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