AVAX declined 14% over the last 24 hours, breaking below its monthly support level at $8.05 that had held since February. The selling pressure occurred despite strong whale activity on the network, with the token trading below key Exponential Moving Averages at press time. The decline reflects broader crypto market weakness, though the persistence of whale participation without corresponding price support has surprised market observers.
AVAX Breaks $8.05 Monthly Support Level
On the daily chart, AVAX broke past its key monthly support zone at $8.05 — a level that had held firm since February. The token's price action dipped aggressively enough that at press time, it was trading below key Exponential Moving Averages. The technical breakdown represents a significant shift from the support level that had provided a floor for the altcoin's price over previous months.
Short Positions Dominate 70% of AVAX Trades
More than 70% of positions at press time were shorts, indicating most traders expect the decline to continue. The imbalance between long and short positions creates additional downward pressure, particularly as buyers struggle to regain momentum. Market sentiment around AVAX reflects traders prioritizing capital protection over attempting to catch a rebound.
AVAX Open Interest Falls to $159 Million
Avalanche network's total Open Interest dropped to around $159 million at press time. The decline in Open Interest during the sell-off points to weakening conviction and reduced participation among traders. Fewer market participants are maintaining positions in AVAX-related contracts compared to previous weeks, signaling cooling enthusiasm even if institutional abandonment is not confirmed.
Whale Activity Continues Amid Price Decline
Whales have remained active on the network throughout the price decline, though no clear evidence of panic selling has emerged. The lack of aggressive accumulation by large holders indicates whales are not rushing to purchase during the current dip. Bears remain in control of price action, with the downtrend persisting despite ongoing whale participation that would typically signal positive market conditions.
FAQ
What caused AVAX's 14% price decline in 24 hours?
AVAX dropped 14% over the last 24 hours due to selling pressure that swept across the crypto market. The decline occurred despite strong whale activity on the network and broke through the $8.05 monthly support level that had held since February.
Why are most AVAX traders holding short positions?
More than 70% of AVAX positions at press time were shorts, reflecting trader expectations that the price decline will continue. This imbalance creates additional downward pressure as buyers struggle to regain momentum and market participants prioritize protecting capital over chasing a rebound.
