AVAX Price Grinds Below Key Support as Bears Gain Control

Avalanche's (AVAX) price is struggling to stay above $6.43, as it trades below its key short-term moving averages. This bearish setup has a clean and tight band of resistance between $6.51 and $6.57, making it difficult for the price to move higher.

The Bollinger Band configuration also suggests that the market is drifting towards a flush, with the price huddled in the lower quarter of the band at a %B reading of 0.28. The MACD has gone completely dead flat, and the RSI is parked in the mid-40s, indicating a lack of trend health.

The derivatives market is flashing a yellow flag, with open interest surging 22.8% in 24 hours while the spot price fell 3.81%. This kind of OI expansion against declining price is not a healthy accumulation signature and suggests a volatility event loading up.

Rongchai Wang notes that AVAX's technical picture is confirming its relative weakness to other Layer-1 competitors, with no capitulation spike to buy into.