AVAX weakened significantly on June 19, falling 9.5% in 24 hours to $6.07. Trading volume increased simultaneously, indicating increased market participation. The article argues that this decline is related to the overall weakening of the crypto market, geopolitical disturbances, and the breach of key support levels.
It broke below the $6.24 support level.
From a daily chart perspective, AVAX has declined for the third consecutive trading day, breaking below the $6.24 area, which had been acting as support since June 6th. Previously, the support levels of $8.95 and $8.21 had also been breached.
The price has continued to trade below the 200-day exponential moving average, indicating that the current trend is still dominated by sellers. If it fails to regain a foothold above $6.24, downward pressure may persist in the short term.
The derivatives market is biased towards short positions.
CoinGlass data shows that the AVAX long/short ratio has fallen to 0.8709, reflecting that derivatives traders are generally more bearish. Meanwhile, open interest increased by 2.31% to $261.78 million, indicating that more positions are being established.
- The main liquidation level is at $5.93.
- The main liquidation level is at $6.17.
- More short positions around $6.17
According to the data in the article, there are approximately $1.24 million in long positions around $5.93 and approximately $2.75 million in short positions around $6.17. In the short term, the bearish forces are currently stronger.
On-chain holdings are diverging.
However, on-chain data doesn't entirely point in the same direction. Nansen data shows that the holdings of the top 100 AVAX addresses increased by 1.47%, indicating that some large holders continued to accumulate during the price pullback.
At the same time, exchange reserves decreased by 0.30%. This usually means that some tokens are flowing out of the trading platform, reflecting that some holders have not chosen to sell at the current price.
Overall, AVAX's short-term trend remains weak, and short positions in the derivatives market are also increasing. However, increased holdings by large on-chain holders and a decline in exchange reserves indicate that some medium- to long-term funds are buying on dips, and market sentiment remains divided.
