Avalanche Token Prices Plummet 4.91% Amid Bearish Sentiment and Rising Open Interest

Avalanche [AVAX] token prices plummeted by 4.91% in the past 24 hours, making it one of the biggest price drops among top-35 cryptocurrencies by market capitalization.

This decline came despite an increase in Open Interest and a rise in bearish sentiment, with spot CVD declining noticeably and funding rates slipping into negative territory.

The loss of the $6.50 local support zone could push prices towards and below $6.0 in the coming days, making it crucial for traders to maintain a bearish bias while being cautious of potential short squeezes.