AVAX -20.44% 24H Drop Amid Sharp Volatility

On SEP 2 2025, AVAX dropped by 20.44% within 24 hours to reach $23.35, AVAX dropped by 208.58% within 7 days, rose by 431.62% within 1 month, and dropped by 3164.38% within 1 year.

A sharp correction gripped AVAX on SEP 2 2025, as the token shed nearly a fifth of its value in a single 24-hour period. The price retreat followed a broader pattern of erratic price swings, with a 208.58% drop recorded over the past seven days and a 431.62% rebound noted over the last 30 days. The decline reflects mounting pressure from bearish momentum in the wake of a month-long recovery, which had pushed AVAX to a relatively elevated position within its broader chart pattern.

Technical observers have noted that the recent 24-hour pullback has pushed AVAX closer to key support levels that have historically acted as short-term floors. The 7-day drop has further intensified concerns about the sustainability of the one-month rally, particularly as the token’s longer-term trend remains bearish with a year-over-year drop of 3164.38%. Analysts project that the next major price reaction could depend on whether AVAX manages to hold a critical psychological level near $20, which has historically served as both a magnet for stop-loss orders and a trigger for algorithmic trading rules.

The movement has sparked renewed scrutiny of AVAX’s fundamental outlook, with some observers suggesting that the token’s valuation remains out of sync with broader macroeconomic trends. While there is no consensus on the exact catalysts behind the recent price swings, many agree that the market remains highly reactive to on-chain activity and news flow, particularly from key development teams associated with the network.

Backtest Hypothesis

A proposed backtesting strategy for AVAX suggests using a dual-indicator approach, combining a 20-day moving average with the Relative Strength Index (RSI) to identify potential entry and exit points during volatile periods. The hypothesis assumes that AVAX is most profitable when entering positions at overbought or oversold RSI levels while aligning with the direction of the 20-day MA. The strategy would aim to capture the momentum swings seen in the 24-hour and 7-day timeframes by initiating long positions during RSI pullbacks below 30 and closing them upon RSI crossings above 70, with stop-loss orders placed below key support levels.