Avalanche Price Drops 7% Amid Overextended Rally and Liquidations
Avalanche's price has dropped by approximately 7% over the past 24 hours due to an overextended rally and derivatives liquidations.
The drop was triggered by a sharp pullback following a rapid 50-55% weekly rally, partly driven by inflows into the Bitwise Avalanche ETF. The recent surge in AVAX's price made a pullback unsurprising, with market observers noting that it broke out from around $7 to as high as $11.7-$11.8 on 5x normal volume.
Derivatives liquidations also contributed to the downside, with TokenPost reporting that long liquidations reached $220,000 on September 23, 2026. A 7-day liquidation map from a derivatives analyst showed around $30-31 million in long-liquidation liquidity below the then-current price.
The macro environment is also risk-off, with major US equity indexes falling and the 10-year US Treasury yield breaking above 5% for the first time since 2007. This has put pressure on growth assets, making high-beta alts like AVAX vulnerable to sharper swings than Bitcoin when volatility picks up.
Despite the drop, recent Avalanche-specific news is mostly positive or neutral, with no obvious negative developments that would justify a 7% crash. The Bitwise Avalanche ETF inflow is a sign of incremental institutional interest, not exit flows.