AVAX Struggles Below $9 Despite U.S. Digital Commodity Clarity

Avalanche’s AVAX token continues to face pressure near the $9 level, even after a favorable shift in U.S. crypto regulation. The token traded around $8.80 on Friday, after moving between $8.70 and $9.14 خلال the day. This price action highlights weak investor confidence across the altcoin market.

Regulatory Boost Fails to Spark Momentum

On March 17, U.S. regulators introduced new guidance that separates certain crypto assets from securities laws. The SEC described “digital commodities” as tokens driven by network utility rather than centralized management. At the same time, the CFTC explained how some crypto assets could qualify as commodities under existing law.

Market analysts quickly pointed to AVAX as a likely beneficiary of this classification. In theory, this clarity should attract institutional interest. However, traders have not responded with strong buying activity.

Key reasons behind muted reaction include:

• Investors remain cautious despite clearer regulations
• Broader crypto sentiment has turned negative
• Liquidity conditions remain tight across markets

Weak Market Sentiment Weighs on AVAX

The broader market environment has played a major role in AVAX’s struggle. Bitcoin dropped sharply, which dragged down altcoins. In addition, rising oil prices and declining equities have pushed investors away from riskier assets like cryptocurrencies.

Derivatives markets have also seen liquidations, adding further pressure. As a result, even positive news has failed to lift prices. Traders often call this a “weak tape,” where bullish developments do not lead to sustained rallies.

Critical Price Level Remains in Focus

Technical analysts continue to monitor the $9 to $9.25 range as a key support zone. AVAX trading below this level suggests ongoing weakness. If buyers fail to reclaim it, the price could slip further into the high $8 range.

For now, AVAX’s performance reflects broader market hesitation rather than project fundamentals. While regulatory clarity may support long-term growth, traders appear focused on macro trends and liquidity.