AVAX crash go drop reach $6.25 as liquidations dey mount; BTC risk‑off dey push short positions
AVAX drop sharply for one BTC-led risk-off move, extend earlier weakness and push price enter early-2021 support area. For June 6, AVAX fall about 14% to intraday low near $6.26, then stabilize around $6.64.
Derivatives activity confirm heavy selling pressure: AVAX open interest drop to about $159M, and over 70% of outstanding positions na short. Liquidation zones above market dey concentrated around $7.00, $7.50, $8.00, $8.50, and $8.80–$9.20, but spot demand no strong enough yet to trigger short squeeze. Broader crypto liquidations also show say wider deleveraging dey happen.
Key trading levels for AVAX: $6.25 mark as “Ultimate Support.” If daily close fall below $6.25 e fit open downside toward $5.46, with deeper area near $4.68. Resistance dey at $7.03, then $7.81 and $8.59. A close above $8.20 go weaken the bearish continuation setup.
Even with steadier DeFi TVL and positive catalysts for background, near-term driver for AVAX still forced deleveraging. Traders suppose watch whether BTC fit stabilize, because AVAX technical structure depend on am.
Bearish
Di latest update show say AVAX don drop pass wetin dem report before, and di selloff na im big liquidation wave wey cause am, no be Avalanche-specific problem. AVAX open interest dey fall and short share pass 70%, dis mean say plenty people dey bet bearish and short-squeeze chance small for now. Technically, AVAX dey test “Ultimate Support” for $6.25 now; if e close below am for di day, historically e dey increase chance say momentum selling fit push am go $5.46 and $4.68. If e rebound above resistance (especially $8.20+), e go reduce chance say downside go continue, but until AVAX reclaim higher moving averages and absorb di short-heavy liquidity bands, setup still lean to more downside short-term.