Avalanche AVAX Plummets to $8.94: Could Fall to $4–$6 Next

Avalanche (AVAX) slipped to $8.94 on Monday, February 9, 2026, marking a 2.58% daily decline, as traders weighed ongoing bearish momentum against a notable institutional development.

Trading volume increased 16.4% over the last 24 hours, reaching $246.5 million, signaling heightened market participation amid broader crypto market volatility. Over the past seven days, AVAX has fallen 12.7%, reflecting sustained selling pressure.

AVAX Loses Key Fibonacci Support Levels

According to crypto analyst More Crypto Online, AVAX has lost all key Fibonacci support levels, signaling heightened downside risk.

The token’s broader price structure reflects the completion of a major five-wave impulse during the 2021–2022 bull market, followed by a corrective cycle labeled as waves (a), (b), and (c). Wave (a) initiated a sharp decline, while wave (b) formed a complex corrective rebound indicative of weak buyer conviction.

Currently, AVAX is in wave (c), a downward impulsive phase subdivided into five smaller waves (i–v). Subwaves i through iii have already unfolded, with wave iii showing strong momentum. Price is testing historical support in the $9–$10 region. 

Analysts note that any corrective rebound toward the Fibonacci retracement zone between $13.66 and $19.77 may face heavy resistance and should be considered a temporary bear-market rally unless price sustains above the 61.8% level. Structurally, a final leg (wave v) could target $4–$6, where historical demand and liquidity clusters exist.

Sumitomo Corporation Joins Avalanche as Validator

In a notable development, Sumitomo Corporation, a Fortune Global 500 company from Japan, has joined Avalanche as a validator. The firm launched its Blockchain Node Operation Initiative, deploying nodes across Avalanche, Ethereum, and the Canton Network. 

Collaborating with its IT subsidiary SCSK Corporation, Sumitomo seeks to actively participate in blockchain infrastructure and validate transactions while exploring on-chain applications in finance, commodities, and energy trading.

Avalanche’s validator network operates on a Proof-of-Stake consensus model, securing multiple chains and ensuring near-instant transaction finality. Validators must stake at least 2,000 AVAX tokens and are rewarded based on uptime and performance.

Sumitomo’s involvement highlights growing enterprise interest and adds credibility to Avalanche’s decentralization, even as short-term price pressures continue.

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