Avalanche Skids 9.5% as Bears Tunnel Past $6.24 Support, Liquidations Lined Up Below

Avalanche (AVAX) dropped 9.50% on the 19th of June, trading at $6.07 at press time as bearish pressure compounded for a third consecutive day. The decline coincided with a broader 2.66% pullback in the crypto market following the postponement of U.S.-Iran talks after fresh attacks in Lebanon, adding a geopolitical tailwind to the sell-off.

According to TradingView's daily chart, AVAX broke below the $6.24 support floor that had held since the 6th of June, extending a pattern of failed supports at $8.95, $8.21, and now $6.24. The price is also trading under the 200-day Exponential Moving Average (EMA), a signal that sellers remain in control. The Average Directional Index (ADX) stood at 54.89, well above the 25 threshold and indicating a strong directional trend in the asset.

Derivatives data from CoinGlass reinforces the bearish positioning. AVAX's Long/Short Ratio has fallen to 0.8709, while Open Interest (OI) climbed 2.31% to $261.78 million, suggesting that bears are actively adding to positions. Liquidation levels are concentrated at $5.93 on the downside and $6.17 on the upside, with $1.24 million in long positions built at the lower level and $2.75 million in short positions stacked at the upper level.

On-chain analytics from Nansen paint a more divided picture. The top 100 AVAX addresses increased their holdings by 1.47% during the dip, and exchange reserves fell 0.30%, pointing to accumulation by both large holders and long-term investors even as derivatives traders positioned for further downside.