AVAX experienced a 4.91% decline in the past 24 hours, ranking among the biggest drops for crypto assets in the top 35 by market capitalization according to CoinMarketCap data. The price drop occurred alongside an uptick in Open Interest, with prices falling below the $6.50 local support zone. The spot CVD declined noticeably, and funding rates slipped into negative territory, indicating that short-term market expectations were firmly bearish. As reported by AMBCrypto, the long-term price trend of Avalanche was pointed downward, with the token trading between $6.38 and $6.78 over the past two weeks.
According to on-chain data from AMBCrypto, Avalanche's daily transactions have experienced a dramatic transformation over the past year. The number of average daily transactions on Avalanche's C-Chain has been moving consistently upward since Q2 2025, with a significant spike occurring on July 13th when transactions reached 6.2 million, representing a nearly 20x increase from approximately 300,000 per day in April and May 2025. However, this metric has shown volatility, with traffic declining 9% in the past 24 hours to 2.620 million as of recent reporting.
As reported by AMBCrypto, Avalanche has achieved significant milestones in its stablecoin ecosystem. The platform has broken into the top-10 stablecoin networks following a substantial increase in AVAX's stablecoin supply, which rose by more than 43% in just one week, reaching a total of over $2 billion. However, this metric has shown recent volatility, with the stablecoin market cap declining by 11% this week to approximately $1.59 billion according to DefiLlama data. Despite the market cap fluctuations, the stablecoin growth indicates expanding liquidity and network activity on the chain, though it hasn't translated into price support for AVAX.
The longer-term downtrend saw a new swing low registered at $5.68, giving rise to a bearish swing structure on the 12-hour timeframe price chart. A bullish structure would have come into play had the $7.08 swing high been broken, but it was tested in early July and subsequently rejected, dragging prices lower. At press time, the band of support around $6.40 appeared to have been breached, which could accelerate the downtrend and drive prices toward $6 and below in the coming days. The $6.70-$6.85 area showed a dense cluster of short liquidations on the 2-week liquidation map, potentially acting as a magnetic zone that could pull prices upward briefly before continuing the bearish trend.
According to AMBCrypto analysis, AVAX has been experiencing significant price pressure despite its growing network activity. The token has been making new lower levels, consolidating between $8.369 and $10.483 from February to June before breaking below the $8 support level. The loss of the $6.50 support zone could push prices toward and below $6.0 next, but traders should beware of a potential short squeeze given the increasing short-selling activity. As the Coinalyze data showed, short-selling was becoming popular, and the 2-week AVAX liquidation map underlined this threat precisely, with the $6.70-$6.85 area showing dense short liquidations that could act as a magnetic zone for price recovery.
