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AVAX Drops 5% : Should Investors Be Concerned ?
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AVAX Drops 5% : Should Investors Be Concerned ?

Avalanche (AVAX) has dropped by 5% in the last 24 hours, sparking uncertainty among investors. Is this a temporary setback in a volatile market, or a sign of a deeper bearish trend? In-depth technical and fundamental analysis.

Written by Hugo Le follézou

Translated on June 6, 2025 at 10:22 by Sarah

"AVAX Avalanche cryptocurrency: Fast, secure network"
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AVAX Declines by 5% : Simple Correction or Heavy Trend ?

The Avalanche (AVAX), the 18th largest cryptocurrency by market capitalization, has experienced a significant 5% drop over the past 24 hours. The token traded in a 5.5% range, fluctuating between a high of $21.16 and a low of $19.98. Despite some support around $20.10, bears seem to be maintaining control of the market.

This mixed performance of AVAX contrasts with the CoinDesk 20 index, which only lost 1.7% over the same period. Technical analysis reveals a clear bearish momentum, with the formation of a concerning technical pattern.

Technical Analysis : Bearish Signals to Watch

The movement of AVAX over the past 24 hours shows several worrisome technical signals:

avax price chart
  • A strong resistance formed at $20.68, followed by a sharp decline with high trading volume (1.58 million units).
  • Although a modest recovery attempt emerged, pushing the price to $20.53, selling pressure quickly returned.
  • Over the last hour, AVAX dropped from $20.512 to $20.073, a 2.14% decrease.
  • A clear bearish pattern formed, pushing the price from $20.39 to $20.22, with a dramatic increase in volume (60,003 units).
  • The price dropped below the psychological support of $20.10 with a slight rebound attempt.
  • The current technical setup shows established resistance at $20.47 and immediate support at $20.00.

These technical elements suggest that bears are dominating the market in the short term, and investors should exercise caution against a potential further decline.

Future of Avalanche ? Opportunities or Threats ?

The decline of AVAX and the short-term formation of a bearish pattern highlight the ongoing volatility of the crypto market. Investors must closely monitor the situation and be prepared to adjust their strategies based on future developments.

Although the short-term outlook is concerning, it’s important to maintain a long-term perspective. Avalanche remains one of the leading decentralized blockchains and continues to attract sustained interest from developers and institutional investors. The project’s long-term resilience will be crucial for AVAX’s prospects.

In conclusion, the AVAX decline and the short-term formation of a bearish pattern are signals to closely monitor. Informed investors will need to exercise caution and agility to navigate this volatile environment. Nonetheless, the strong fundamentals of Avalanche suggest long-term opportunities for those who can seize the right moments.

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Hugo Le follézou

Hugo Le follézou

Passionate about the crypto world, he explores the blockchain ecosystem to extract the most essential insights. With his expertise in SEO and web writing, he transforms news and technical analysis into clear, engaging, and impactful content. His goal? To help investors better understand the opportunities and challenges of the crypto market.

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