Avalanche Leadership Shift: Board Exits Hit AVAX as Market Watches Closely

• Avalanche’s leadership shift may impact investor confidence and ecosystem stability.
• AVAX price struggles with bearish trends but nears potential reversal signals.
• Breakout could push AVAX to $43.84, while failure may lead to extended declines.

The Avalanche ecosystem is entering a critical period as three board members have resigned. Omer Demirel, Aytunç Yildizli, and Vikram Nagrani stepped down from the boards of the Avalanche Foundation and its subsidiaries. Their decision, described as “well-considered,” suggests a shift in the leadership structure. 

Despite their departure, they have reaffirmed their commitment to Avalanche’s development. Meanwhile, the AVAX token has been struggling, seeing significant price declines over the past week and testing crucial support levels.

AVAX Price Drops Nearly 10% in a Week

As of press time, Avalanche (AVAX) is priced at $19.81 , reflecting a notable drop in recent days. The cryptocurrency has recorded a 3.73% decline in the past 24 hours and a -9.78% decrease over the past week. 

With a circulating supply of 410 million AVAX, the market capitalization now stands at $8.19 billion. The token’s downward trend has raised concerns among investors, as it has consistently formed lower highs and lower lows.

Related: Token Unlocking Events to Release $260M This Week: Avalanche, Solana Impacted

Market Indicators and Potential Reversal Signals

AVAX/USD daily price chart, Source: TradingView

Technical indicators suggest that AVAX is in bearish territory, but there are signs of possible stabilization. The Relative Strength Index (RSI) currently sits at 36.99, suggesting that the asset is nearing oversold conditions but still has room for further declines. 

The Moving Average Convergence Divergence (MACD) remains negative, underlining prevailing bearish momentum. However, the histogram implies that selling pressure is weakening, which could signal an upcoming shift.

Analyst Sees Potential AVAX Reversal if Key Support Holds

Despite the recent bearish trend , MarzellCrypto, an analyst, suggests that AVAX may be approaching a critical reversal point. The alignment with Fibonacci retracement levels hints that a bullish breakout could occur if support holds. 

Related: Avalanche Blockchain Secures 700,000 Land Records for an Indian Town

Rebound from the current range could propel AVAX toward mid-term targets of $43.84, $58.06, and $80.03. However, failure to sustain the current support level may trigger extended declines.