AVAX’s 3.4% drop breached the $17.45 support due to a confirmed ‘double top’ pattern—a bearish technical formation where prices twice reject at a resistance level. This signaled exhaustion among buyers, triggering algorithmic sell orders clustered around this psychological price point. The breakdown accelerated as stop-losses were hit.
Fundamentally, the decline coincided with sector-wide altcoin weakness and profit-taking after AVAX’s recent outperformance. Network metrics showed reduced activity in Avalanche subnets, diminishing the ‘fundamental anchor’ for its valuation.
The next critical support lies near $16.80, a level that held during May’s correction. Bulls need to reclaim $17.45 swiftly to invalidate the bearish pattern. Failure could extend losses toward $16 amid scheduled token unlocks adding sell pressure.
