Avalanche’s New Crypto Card, AVAX Price Retests Older Support

The Avalanche blockchain has refreshed its efforts to push for mainstream adoption, as AVAX price dips.

The network has reportedly launched a new crypto card through a partnership with Rain.

The Avalanche blockchain’s new mass adoption effort will reportedly deploy the card to allow crypto holders to pay using their crypto holdings.

Sources revealed that the card which will particularly target unbanked regions that have historically had limited or no access to banking facilities

Initial sources also revealed that the card will be available in physical and digital versions. The latter in particular could make it much easier to access.

In addition, the card will reportedly support multiple Avalanche-based cryptocurrencies including AVAX and stablecoins such as USDT and USDC.

Some respondents have welcomed this move as a positive step towards the integration of crypto into day-to-day spending.

It could be an interesting bridge between crypto and traditional finance.

AVAX Price Action Recap: Bulls Ready to Buy or is There More Downside Risk?

Like most other top cryptocurrencies, Avalanche’s native cryptocurrency AVAX experienced capitulation over the weekend.

It tanked by roughly 22% from its 7-day high to low. AVAX has notably retraced below November lows and recently pushed for a retest of its September support near the $21 price level.

AVAX price action | Source: TradingView

AVAX price sat within the same support level at the time of observation.

Also, note that the price and its RSI formed some divergence, with the price recently dipping lower than its February 3rd low.

Meanwhile, its RSI’s latest low was higher than its previous low at the start of the month.

The price-RSI divergence suggests that price could potentially be within a healthy buy back zone.

The support retest may further reinforce AVAX’s attractiveness at its current price point.

AVAX Struggles to Secure Enough Demand

Although AVAX is currently in a noteworthy price zone, the current market sentiment is still in extreme fear.

As a result, investors have adopted a cautious approach, and any prevailing demand remains weak.

The Avalanche native coin experienced declining whale activity in the last 7 days, in line with the current state of the market.

Whale activity did lean in favor of some accumulation but a lack of significant build-up signals that buyers are still on the sidelines.

AVAX large holder flows | Source: IntoTheBlock

Whale activity was consistent with the state of demand in both the derivatives and spot segment.

For example, derivatives volumes were still low and even dipped by -38% in the last 24 hours at the time of observation.

Spot flows also failed to support any strong buy-back despite the discounted prices.

For example, it registered roughly $3.8 Million worth of outflows in the last 24 hours.

Failure to materialize demand at its current level suggests that prices could still dip further. AVAX price’s next support level could be below $18.