AVAX price has faced a setback following the recent crypto sell-off on September 15. The sentiment surrounding recovering altcoins has been shaken after the U.S. Senate failed to advance the Digital Asset Market Clarity Act in a procedural cloture vote. The vote resulted in a 49-50 outcome, falling short of the 60 votes required for the bill to move forward.
The current market conditions have placed AVAX at a critical juncture, with the $7 support level playing a key role in determining the token’s future trajectory. As long as AVAX holds above $7 in September, the broader rally that began in June 2026 remains intact. However, a break below $7 could signal a shift in the market dynamics.
If AVAX fails to hold above $7, the token may test its ascending trendline. A breach of this support level could turn the market sentiment bearish, potentially leading to another significant decline similar to the one experienced in May 2026. In such a scenario, AVAX could potentially drop to $5 or even lower levels.
Despite the challenges faced by AVAX, there are positive developments taking place within the Avalanche network. Recently, Avalanche announced the introduction of permissionless tokenized stocks on its platform. Pharaoh, a decentralized exchange built on Avalanche, plans to offer 24/7 trading of tokenized U.S. stocks, providing traders with another avenue to access traditional assets on-chain.
In order to regain bullish momentum, AVAX price needs to reclaim the 200-day Exponential Moving Average (EMA) band. If buyers manage to push the price back above $7 and regain control, AVAX could target levels of $8.50 and $10.00 in the near term. This would help sustain the recovery that began in June despite the recent market turbulence.
As AVAX remains caught between defending the $7 support level and facing renewed downside risks, the next move around this key level will be crucial in determining the token’s future trajectory. Whether the recovery continues or a deeper correction ensues will largely depend on how AVAX reacts to the current market conditions.