AVAX Crashes to $6.25 as Liquidations Mount, BTC Risk-Off Drives Shorts
AVAX fell sharply in a BTC-led risk-off move, extending earlier weakness and pushing price to the early-2021 support area. On June 6, AVAX dropped about 14% to an intraday low near $6.26, then stabilized around $6.64.
Derivatives activity confirmed heavy selling pressure: AVAX open interest fell to about $159M, and over 70% of outstanding positions were short. Liquidation zones above the market were concentrated around $7.00, $7.50, $8.00, $8.50, and $8.80–$9.20, but spot demand was not strong enough yet to trigger a short squeeze. Broader crypto liquidations also signaled a wider deleveraging flush.
Key trading levels for AVAX: $6.25 is marked as “Ultimate Support.” A daily close below $6.25 could open downside toward $5.46, with a deeper area near $4.68. Resistance is highlighted at $7.03, then $7.81 and $8.59. A close above $8.20 would weaken the bearish continuation setup.
Even with steadier DeFi TVL and positive catalysts in the background, the near-term driver for AVAX remains forced deleveraging. Traders should watch whether BTC can stabilize, since AVAX’s technical structure depends on it.
Bearish
The latest update shows a much deeper AVAX drawdown than earlier reporting, with the selloff driven by a broad liquidation wave rather than an Avalanche-specific fault. Falling AVAX open interest and a >70% short share imply aggressive bearish positioning and limited immediate short-squeeze potential. Technically, AVAX is now testing “Ultimate Support” at $6.25; a daily close below it historically increases odds of momentum selling toward $5.46 and $4.68. While a rebound above resistance (notably $8.20+) would reduce downside continuation odds, until AVAX reclaims higher moving averages and absorbs the short-heavy liquidity bands, the setup remains skewed to further downside in the short term.