Avalanche AVAX Falls Toward $8.85 Support

That divergence raises the odds of more technical damage if the $8.85 floor gives way. AVAX is still down 93.9% from its all-time high of $144.96, underscoring how little room it has to absorb another leg lower without testing deeper support around $6.04 and then $5.68. The token’s 14-day relative strength index and momentum readings remain weak, consistent with a market that has not yet found a durable bid.

Demand from the products that were supposed to broaden access is also fading. Spot AVAX ETFs recorded zero net inflows from Oct. 8 through Oct. 22, while total net assets dropped to $51.4 million. For investors, that is a warning that institutional and retail wrapper demand is not offsetting selling pressure in the underlying token. In a market where sentiment can turn quickly, a lack of inflows often matters as much as absolute price levels.

The supply picture adds another layer of pressure. AVAX has a market capitalization of about $3.95 billion, but only 443.9 million tokens are in circulation out of a total cap of 720 million. As staking rewards and token unlocks continue to release supply, rallies require more cash to move the price higher, which helps explain why previous rebounds this year have faded quickly.

The near-term question is whether buyers defend the 30-day floor or step aside and let the token reset lower. A break below $8.85 would likely reinforce the bearish case that AVAX is still searching for a true valuation floor, while a recovery would need confirmation from both price action and renewed ETF inflows. For now, the market is treating Avalanche as a smaller, more vulnerable crypto asset rather than a relative haven within the sector.