Avalanche (AVAX) has experienced a sharp drop, falling over 21% in the past 24 hours to trade around $22.15. Despite the decline, market statistics and technical signals suggest that AVAX could be preparing for its next bull run, and it has good support near the $20–$25 level.
Avalanche is currently trading at $22.61, with a 24-hour volume of $4.77 billion and a market capitalization value of $9.35 billion, which places it at a 0.25% market dominance. Though it decreased by a staggering 21.87% in the last day, current data suggests that momentum may flip to a positive direction.
As CryptoPulse indicates that the region of this price corresponds to the earlier high-volume region from AVAX’s major current rally, which indicates a continuation of the upward trend.
Analysts note that the $20–$25 area presents a vital liquidity area in which traders often look for precise entry points. If it continues to sustain its momentum and volume increases, a rally above $25 may clear the way for further upside direction in the days ahead.
Technically, AVAXUSDT has been trading in a bull cycle, overcoming significant levels of resistance and breaking out of a long period of consolidation. Now, the token is testing primary Fibonacci support between the levels of 0.5 and 0.618, which often indicates a turning point towards a new momentum in growth.
If Avalanche defended this region and started climbing once more, it may validate a strong retracement ahead of the next wave higher. Speculators indicate that the foreseen pattern target could achieved in the next few months, and it may indicate a reversal period for AVAX following its steep correction.
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Avalanche witnessed huge activity in the derivatives market, as the volume of derivative traded skyrocketed 239.68% to $4.41 billion. However, despite this trading rush, open interest fell sharply by 49.47%, dropping to $728.97 million. This shows that a majority of the traders have closed their current positions following the rally, and there may be a shift from speculation holding to intraday trading activity.
The OI-weighted change recorded a massive 0.2699% drop, reflecting a drastic imbalance in long and short positions. It typically indicates heavy liquidation of markets or leveraged trade unwinding at a fast pace.
It indicates that the investors are cautiously repositioning himself in a highly volatile situation of the AVAX market, perhaps due to recent spot movements and correction of liquefaction.
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