AVAX has been trading in the red in the last 24 hours. The token benefited from last week’s volatility which saw most of the market make some gains. Over the past week, AVAX is up by 18.6%, but as the bearish momentum takes shape, these gains could likely be erased.

AVAX is losing its weekly uptrend momentum. The recent gains rallied the token from $16 to $19. However, this uptrend has weakened, and the token is falling again, with $15 being the likely outcome as the market adjusts after the interest rate hike expected to happen on Wednesday after this month’s FOMC meeting.

Even though the price is correcting, investors anticipate that this token could rally higher in the long term, after which a rally to $20 could be on the way. AVAX trading volumes in the past 24 hours stand at over $457 million. Such gains will most likely be attributed to the growing adoption of the network by the best crypto apps.

The Relative Strength Index at 43 shows that AVAX is leaning more towards being oversold, which is a bullish outlook. Traders that book profits at low prices could prevent further declines or ignite a slight rally.

The Avalanche total value locked (TVL) is currently the fourth-largest one, according to DeFiLlama, after Ethereum, Binance Smart Chain, and Tron. A rise in the TVL could prompt a major rally to see $50 reclaimed long-term.

Avalanche’s TVL has increased, shedding a positive light on the price of AVAX in the long term. This presents a buying opportunity for traders anticipating that the token will achieve a bullish momentum. However, a bull run for AVAX largely depends on how the broader cryptocurrency market performs.

Traders looking to make significant gains in the short term should consider diversifying their