According to data from crypto.news, Avalanche (AVAX) fell 14% to an intraday low of $6.26 on Saturday, June 6, marking its lowest level since January 2021 before stabilizing at $6.64 at press time. The sharp decline came after Bitcoin 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. The move was not driven by a clear Avalanche-specific network failure, as the token 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.
The selloff was part of a broader crypto market liquidation event, with more than $1.86 billion in long liquidations across crypto derivatives, according to CoinGlass liquidation heatmap data. 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. 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–$9.20 zone, with a rebound into those levels potentially triggering short liquidations.
AVAX fell close to its final major Murrey Math support zone near $6.25, labeled as 'Ultimate Support' 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. 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. Resistance now sits near $7.03, followed by $7.81 and $8.59, with a close above $8.20 weakening the downside continuation setup.
According to analyst Dr. Chart MAZEN, AVAX still carries downside continuation risk unless buyers reclaim higher levels. 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's $5.77 level may act as the first test before deeper capitulation. AVAX can still form a bottom if buyers defend the $6.25–$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.
