Avalanche (AVAX) experienced a 4.91% price decline in the past 24 hours, one of the largest drops among top-35 cryptocurrencies by market capitalization, according to CoinMarketCap data. The decline occurred alongside an uptick in Open Interest and negative funding rates, while spot CVD fell notably. The price broke below the $6.50 local support zone, and short-term market expectations turned firmly bearish. Longer-term trends remain downward, with a new swing low at $5.68 and a bearish structure confirmed after failing to break the $7.08 resistance. Bitcoin’s drop below $65.5k added further pressure, increasing the risk of a broader bearish sentiment shift.
Avalanche (AVAX) fell 4.91% in the past 24 hours, marking one of the steepest declines among top-35 crypto assets. Data showed Open Interest rising even as prices slipped below the $6.50 local support zone.
Spot CVD declined noticeably, while funding rates turned negative, indicating heightened short-selling in the derivatives market. The long-term price trend remained pointed downward, with a new swing low registered at $5.68 on the 12-hour chart.
A bullish structure would have required breaking the $7.08 swing high, tested in early July but rejected. Over the past two weeks, AVAX traded between $6.38 and $6.78, but the $6.40 support band appeared breached at press time.
Bitcoin fell below the $65.5k local support zone and traded under $65k, exacerbating bearish sentiment. If selling persists, AVAX could accelerate toward $6 and below in the coming days.
Despite bearish conviction, the two-week liquidation heatmap showed a dense cluster of short liquidations in the $6.70–$6.85 zone. This cluster could act as a magnetic pull for a short squeeze before the existing bearish trend resumes. Traders should maintain a bearish bias while remaining alert to that possibility.
