AVAX May Face Deeper Decline as Bearish Signals Mount

• AVAX trades in a descending channel on the four-hour chart, facing resistance and forming bearish candlesticks.

• Short positions outnumber longs by $4.15 million to $1.07 million, highlighting market pessimism.

• Trading volume has declined to $387 million, with AVAX down 2.85% to $17.20 as of recent data.

Discover why AVAX faces a potential price crash amid bearish signals. Analyze liquidation zones, CVD data, and technical patterns for informed trading decisions in the volatile crypto market.

Will AVAX Price Crash Soon?

AVAX price crash risks are elevated due to persistent bearish momentum in derivatives markets and technical indicators. Traders have aggressively shorted the token, with taker sell orders dominating over the past week according to CryptoQuant data. If AVAX fails to hold above $18, a decline toward $14 becomes likely, driven by liquidation cascades and reduced market participation.

What Are the Key Bearish Signals for AVAX?

Market analysis reveals over-leveraged positions creating significant liquidation risks for AVAX holders. Data from Coinglass shows $1.07 million in long positions vulnerable at $16.79, contrasted by $4.15 million in shorts at $17.65, underscoring seller control. This imbalance suggests heightened volatility, where a downward break could trigger further selling pressure. Expert observers note that such skewed positioning often precedes sharp corrections in altcoins like AVAX.

Source: Coinglass

CryptoQuant’s Futures Taker Cumulative Volume Delta (CVD) further confirms bearish dominance, as sell orders have outnumbered buys consistently. This metric, tracking net buying or selling in futures, points to traders anticipating no near-term rally for AVAX. Over the last seven days, negative CVD readings have intensified, aligning with broader altcoin weakness amid macroeconomic pressures.

Source: CryptoQuant

Combining these derivatives insights with spot market trends paints a cautious picture for AVAX investors. The token’s price stood at $17.20 recently, reflecting a 2.85% daily loss. Trading volume has also waned to $387 million, indicating fading interest and potential for amplified downside moves if sentiment worsens.

Price Action and Technical Analysis for AVAX

On the four-hour chart, AVAX has navigated a descending channel pattern since October 2025, testing boundaries repeatedly. A brief recovery pushed it toward the upper resistance, but subsequent selling formed bearish candlesticks, rejecting higher prices. This setup, observed via TradingView tools, signals continued downward pressure unless bullish catalysts emerge.

Source: Trading View

Should AVAX breach below $18, analysts project an 18% further decline to $14 support. Persistent bearish momentum could extend losses beyond that. Conversely, a close above $18 might invalidate the bearish thesis, though current indicators like the Average Directional Index (ADX) at 20.35 suggest weak overall directionality. The Supertrend, meanwhile, shows mild bullish divergence, hinting at possible short-term rebounds amid the broader downtrend.

Avalanche’s ecosystem, known for its high-throughput blockchain, continues to attract developers, but price action remains decoupled from fundamentals in this market phase. Data from on-chain analytics platforms like those referenced underscores the need for caution, as leveraged trading amplifies risks in uncertain environments.

Frequently Asked Questions

What Causes a Potential AVAX Price Crash in 2025?

Over-leveraged short positions and negative CVD data from CryptoQuant contribute to AVAX’s bearish outlook. With $4.15 million in shorts at key levels per Coinglass, a liquidation cascade could drive prices down if support fails, exacerbated by declining volume and channel patterns on technical charts.

Is Now a Good Time to Short AVAX Based on Current Trends?

Current market conditions, with dominant seller activity and bearish candlesticks, support short strategies for AVAX. Traders should monitor $18 resistance closely, as a break below could confirm further downside, though weak ADX readings indicate monitoring for volatility spikes when using voice search for real-time updates.

Key Takeaways

• Bearish Derivatives Dominance: Short positions exceed longs significantly, with CryptoQuant CVD showing sustained selling pressure over the past week.
• Technical Channel Pattern: AVAX remains trapped in a descending channel, vulnerable to an 18% drop to $14 if $18 support breaks.
• Cautious Trading Advice: Reduced volume and mixed indicators like Supertrend suggest avoiding aggressive longs; consider shorts with risk management.

Conclusion

The confluence of bearish signals, including over-leveraged positions and negative CVD from sources like Coinglass and CryptoQuant, positions AVAX for a potential price crash below $18. While technical rebounds are possible, the overall sentiment leans downward. Investors should stay informed on AVAX price movements and prepare strategies for volatility in the coming weeks.