Avalanche’s AVAX token fell 3.75% on February 24, 2026, marking its second consecutive daily decline. Trading volume surged over 18% to $265 million, a sign often associated with strengthening bearish momentum. Analysts warn that a weekly close below the key $8.50 support level could trigger a sharp decline towards the $5.69 to $6.55 range, a view supported by derivative data showing traders heavily targeting short positions.
The cryptocurrency Avalanche saw its AVAX token decline for a second straight day, falling 3.75% amid a surge in trading volume. According to data from CoinMarketCap, volume increased over 18% to $265 million, which typically signals strengthening downward momentum.
Price action on the weekly chart shows AVAX struggling to reclaim a key support level of $8.50. A failure to close above this level could lead to a sharp decline of approximately 30%.
The Average Directional Index (ADX) reached 36.93, indicating the asset has strong directional momentum. A crypto analyst stated that AVAX has broken down from a bearish flag pattern and is poised to hit the $6.55 level.
Derivative data from CoinGlass reveals traders are heavily targeting the $8.04 and $8.59 price levels. The exchange liquidation map shows $3.46 million in short-leveraged positions against $2.19 million in long-leveraged positions.
This positioning indicates intraday traders are strongly following the prevailing market trend. The data suggests many believe AVAX is unlikely to surpass the $8.59 level in the near term.
