Avalanche's native coin, AVAX, is facing significant challenges as its price languishes below $40, heavily influenced by Bitcoin's negative trend. The coin is currently testing the $31 region, with key support at $30.74 and resistance at $33.26 and $34.06. The upcoming US inflation data release could further exacerbate market volatility, potentially leading to a chaotic period with extreme sales.

AVAX has dropped to the $30 region, mirroring Bitcoin's 20% decline from its all-time high. The four-hour chart reveals crucial support and resistance levels for the popular altcoin. If the price dips below $30, significant liquidations on the futures side could accelerate sales. Currently, the AVAX Coin price is finding buyers at $31.9, above the main support level of $30.74. A rapid decline is likely if this support is lost.

In the short-term outlook, the $33.26 and $34.06 levels will act as resistance, while $39.78 serves as AVAX's EMA200 level and trend resistance. The Ichimoku Cloud is at key resistance, and the price needs to rise above it for a potential reversal. However, the decreasing holding period of AVAX Coin investors, now back to late 2022 levels, indicates a focus on short-term goals, confirming the selling trend.

Many metrics suggest that AVAX Coin investors are reducing their risks and distancing themselves from the market. While fewer short-term investors may reduce immediate price volatility, it also makes it easier for large sellers to push the price down. The upcoming US inflation data release could increase volatility for Bitcoin and the rest of the crypto markets, potentially leading to a chaotic period with extreme sales down to $19. AVAX buyers may attempt to hold the price in the $25-27 range, but a drop below $24 could accelerate the decline by triggering stops.