Avalanche Takes a Hit Amid Middle East Tensions and Bearish Technicals
Altcoins have taken a significant beating following Israel’s attack on Iran, stoking fears of a broader Middle Eastern conflict and driving a widespread risk-off sentiment in the markets. Avalanche ($AVAX ) was particularly affected on Friday, June 13, dropping more than 14% to a daily low of $18.53. While the token later stabilized around $19, it still posted a considerable daily decline of 9.75%, making its drop worse than the average altcoin, with only 23 out of the top 100 tokens seeing a more severe plunge.
This heightened decline for Avalanche can be partly attributed to underlying weak technicals, notably a long-term bearish pattern that originated in 2024. The formation of a double-top pattern at $55.20, followed by a subsequent crash below $15, suggests that the AVAX price will face significant resistance and a challenging path to regain its previous levels. As rising oil prices fuel inflation fears and push traders towards safe-haven assets, AVAX's technical weaknesses compounded the market-wide pressure.
