Avalanche Bulls Gear Up as Smart Money Takes on $10 Floor

AVAX has seen its price drop to $10.27 after losing 7.66% in a single session, but the story is more complicated than it initially seems.

A surge of 15.62% in open interest paired with smart money holding 72.9% long positions suggests that the decline may be an opportunity for buyers to step in and defend critical support levels.

The broader Layer-1 backdrop, where Ethereum and Solana continue to dominate DeFi liquidity and meme cycles, adds to the complexity of the situation.

For AVAX to reclaim relevance, it must hold onto its current price above $10, a round number that acts as a magnet for stop hunts. The derivative data shows that new capital is entering, with top traders sitting 72.9% long against only 27.1% short.