Avalanche (AVAX) Price Double-Top Confirmed: More Pain Ahead?

Key Insights:

• Avalanche (AVAX) broke down from a bearish double-top pattern during the daily time frame. This opened the path for a potential price dip.
• This bearish pattern has formed near a key resistance level. AVAX experienced a price decline in May 2025, suggesting history may repeat itself.
• AVAX traders appear strongly betting on the bearish side. $14.94 Million short positions have been built at the $22.64 level.

With a 23% price dip, Avalanche’s native token AVAX has activated its bearish outlook. This hinted at potential downside momentum in the coming days. The bearish speculation appears after the asset has printed six consecutive red candles. Also, it failed to hold the key support level.

AVAX Traders Remain Bearish

Following the shift in the market sentiment, traders have been found strongly betting on the bearish side. The same was revealed by the on-chain analytics firm Coinglass. According to the Coinglass Exchanges liquidation Map data, there is no support.

The selling pressure in the market has skyrocketed. Data reveals that the major liquidation level in the AVAX is at $20.63 on the lower side. That held $1.90 Million worth of long positions.

On the other hand, $22.64 is another primary liquidation level built for traders. These traders have placed $14.94 Million worth of short positions.

These strong bearish bets have made it clear that bears dominate the asset. Additionally, there is a strong possibility that the asset couldn’t get any support till $18.65 level. This could be seen due to the lower presence of bulls.

AVAX price stood at $20.88 at press time and has slipped 3.65% over the past 24 hours. With this price decline and activation of a bearish outlook, traders and investors’ participation has plummeted notably.

CoinMarketCap data reveals that AVAX’s 24-hour trading volume has tanked by 45% from the previous day.

AVAX Price Technical Analysis: Double-Top Breakdown Confirmed

According to expert technical analysis, AVAX appears bearish. It is poised to continue its downside momentum in the coming days.

The daily chart reveals that the asset recently broke out of a double top pattern. This has successfully retested and confirmed its bearish continuation.

Based on recent price action, there is a strong possibility that the AVAX price could see downside momentum. It could dip to nearly 10% and reach $18.65 in the coming days.

Due to continuous downside momentum, the asset could face some retracement before reaching the support level. Despite a notable decline in recent days, AVAX price is still trading above the Supertrend. Also, it appears green, which hints that the asset is in an uptrend.

However, the asset has broken down a bearish pattern, and the price is heading toward the next support. In addition, the Relative Strength Index (RSI) stands at 41, indicating that the asset is near the oversold territory.

In such a case, the asset could only see a reversal if the buying pressure appears. Otherwise, it will continue to follow the bearish trend.

Investors and Institutions Activity

Given the current market sentiment, whale participation has plummeted notably. On-chain analytics firm IntoTheBlock reported this.

Data showed that the large transaction volume of AVAX has dropped by 40.80% in the past 24 hours. However, some investors and traders still appear to be taking advantage of the recent dip.

Their accumulation has skyrocketed over the past few days. According to Coinglass data, exchanges have seen a $1.90 Million outflow of AVAX tokens in the last 24 hours. This substantial outflow of assets hints at potential accumulation and can lower the selling pressure.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.