The price drop of nearly 7% in 24 hours is a significant short-term negative movement for AVAX, which may lead to bearish sentiment among investors. The decrease in trading volume suggests lower market interest, which could further pressure the price. However, the recent weekly gain indicates some underlying positive sentiment that may buffer the impact. The reduction in circulating supply is typically a positive factor for price, but it is very slight in this case and is unlikely to counteract the negative price action in the short term.