{"id":30974,"date":"2026-06-06T08:09:29","date_gmt":"2026-06-06T08:09:29","guid":{"rendered":"https:\/\/bitunikey.com\/news\/avax-price-crashes-to-early-2021-support-is-a-bottom-forming\/"},"modified":"2026-06-06T08:09:41","modified_gmt":"2026-06-06T08:09:41","slug":"avax-price-crashes-to-early-2021-support-is-a-bottom-forming","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/avax-price-crashes-to-early-2021-support-is-a-bottom-forming\/","title":{"rendered":"AVAX price crashes to early 2021 support, is a bottom forming?"},"content":{"rendered":"<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">AVAX price crashed to levels last seen in early 2021 after a market-wide liquidation wave erased support near $8 and left traders heavily bearish.<\/p>\n<div id=\"cn-block-summary-block_e456ccd96c6646facfe9aead79e9a207\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>AVAX price has fallen to levels last seen in early 2021 after a crypto-wide liquidation event wiped out key support zones.<\/li>\n<li>Open interest dropped to $159 million while more than 70% of derivatives positions remained short, highlighting bearish market sentiment.<\/li>\n<li>Traders are watching the $6.25 \u201cUltimate Support\u201d level, with a break below potentially exposing AVAX to further downside toward $5.46 and $4.68.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>According to data from crypto.news, Avalanche (AVAX) fell 14% to an intraday low of $6.26 on Saturday, June 6, its lowest level since January 2021, before stabilizing at $6.64 at press time.\u00a0<\/p>\n<p>The sharp decline came after Bitcoin (BTC) briefly fell below the key $60,000 support level and touched nearly $59,000, prompting traders to reduce risk as leveraged long positions were liquidated, and the Crypto Fear &amp; Greed Index fell to 12 and remained in Extreme Fear territory, underscoring the deteriorating sentiment across the digital asset market.<\/p>\n<figure class=\"wp-block-image size-full is-resized\"><figcaption class=\"wp-element-caption\">Source: <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/alternative.me\/crypto\/fear-and-greed-index\/\" target=\"_blank\" rel=\"nofollow\">Alternative<\/a><\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\">Leverage flush leaves AVAX near early 2021 range<\/h2>\n<p>The move was not driven by a clear Avalanche-specific network failure. Before the selloff, Avalanche had seen stronger institutional and on-chain activity, including more than $1.16 billion in on-chain real-world assets and the launch of regulated AVAX futures by CME Group.<\/p>\n<p>Those developments offered little protection once the market entered a forced deleveraging cycle. The additional context showed more than $1.86 billion in long liquidations across crypto derivatives, with high-beta layer-1 tokens such as AVAX absorbing sharper losses than Bitcoin.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>Derivatives positioning also weakened. Open interest in AVAX fell to about $159 million, showing fewer traders were willing to keep capital in active positions during the decline. At the same time, more than 70% of positions were shorts, leaving the market tilted toward further downside rather than a fast recovery.<\/p>\n<p>CoinGlass liquidation heatmap data shows heavy leverage above the current price, especially around $7.00, $7.50, $8.00, $8.50, and the $8.80\u2013$9.20 zone. A rebound into those levels could trigger short liquidations, but current price action has not yet shown enough spot demand to force that squeeze.<\/p>\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"4080\" height=\"2409\" src=\"https:\/\/bitunikey.com\/news\/wp-content\/uploads\/2026\/06\/1780733369_937_AVAX-price-crashes-to-early-2021-support-is-a-bottom.webp.webp\" alt=\"AVAX liquidation heatmap.\" class=\"wp-image-14465384\"  ><figcaption class=\"wp-element-caption\">AVAX liquidation heatmap | Source: <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.coinglass.com\/pro\/futures\/LiquidationHeatMap?coin=AVAX&amp;type=symbol\" target=\"_blank\" rel=\"nofollow\">CoinGlass<\/a><\/figcaption><\/figure>\n<p>According to an earlier X post by analyst Dr. Chart MAZEN, AVAX still carries downside continuation risk unless buyers reclaim higher levels. \u201cI have a classic continuation pattern for the downside in case the 8.20$ area breaks,\u201d the analyst wrote, adding that he was watching \u201c6.53\u201d and \u201c5.77\u201d as lower areas.<\/p>\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"586\" height=\"744\" src=\"https:\/\/bitunikey.com\/news\/wp-content\/uploads\/2026\/06\/1780733369_575_AVAX-price-crashes-to-early-2021-support-is-a-bottom.webp.webp\" alt=\"AVAX price crashes to early 2021 support, is a bottom forming? - 3\" class=\"wp-image-14465383\" style=\"width:639px;height:auto\"  ><figcaption class=\"wp-element-caption\">Source: <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/x.com\/dr0chart\/status\/2061572481391943786\" target=\"_blank\" rel=\"nofollow\">X<\/a><\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\">Technical setup keeps the bottom case fragile<\/h2>\n<p>AVAX fell close to its final major Murrey Math support zone near $6.25 earlier today, a level labeled \u2018Ultimate Support\u2019 on the daily chart. The token previously lost the $7.81 and $7.03 support bands during the liquidation-driven selloff, leaving the $6.25 area as the key line bulls must defend to prevent a deeper decline toward the oversold region near $5.46.<\/p>\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1827\" height=\"954\" src=\"https:\/\/bitunikey.com\/news\/wp-content\/uploads\/2026\/06\/1780733369_429_AVAX-price-crashes-to-early-2021-support-is-a-bottom.webp.webp\" alt=\"AVAX daily price chart.\" class=\"wp-image-14465385\"  ><figcaption class=\"wp-element-caption\">AVAX daily price chart \u2014 June 6 | Source: crypto.news<\/figcaption><\/figure>\n<p>At press time, AVAX was trading below both the 50-day moving average at $9.15 and the 200-day moving average at $10.66.<\/p>\n<p>Reclaiming those levels would be necessary to restore a bullish market structure, although the token\u2019s defense of the $6.25 support zone has begun attracting attention from traders looking for signs of a longer-term bottom.<\/p>\n<p>Resistance now sits near $7.03, followed by $7.81 and $8.59. A close above $8.20 would weaken the downside continuation setup described by Dr. Chart MAZEN, while a stronger move above $10 would bring the 200-day average and major trend resistance back into focus.<\/p>\n<p>Downside risk remains clear. A daily close below $6.25 would keep sellers in control and expose AVAX to the -1\/8 Murrey level near $5.46. Below that, the next major downside area sits near $4.68, while Dr. Chart MAZEN\u2019s $5.77 level may act as the first test before deeper capitulation.<\/p>\n<p>AVAX can still form a bottom if buyers defend the $6.25\u2013$6.50 range and force shorts to unwind above $7.50. Until price reclaims $8.20 with strong volume, the chart favors a damaged recovery attempt rather than a confirmed reversal.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<div class=\"cn-block-disclaimer\">\n<div class=\"cn-block-disclaimer__icon\">\n            <svg class=\"icon icon-info\" aria-hidden=\"true\"><use xlink:href=\"#icon-info\"><\/use> <\/svg>        <\/div>\n<p class=\"cn-block-disclaimer__content\">\n            Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.        <\/p>\n<\/p><\/div>\n<p><!-- .cn-block-disclaimer --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>AVAX price crashed to levels last seen in early 2021 after a market-wide liquidation wave erased support near $8 and left traders heavily bearish. Summary AVAX price has fallen to&hellip;<\/p>\n","protected":false},"author":1,"featured_media":30975,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-30974","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/30974","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=30974"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/30974\/revisions"}],"predecessor-version":[{"id":30976,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/30974\/revisions\/30976"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/30975"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=30974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=30974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=30974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}