AVAX Holds at $6.49: Double Bottom Hints Recovery as Whales Inject Short-Term Risk

In a decisive move that has put traders on high alert, Avalanche (AVAX) is currently trading at $6.49, signaling a potential 10% correction if critical support fails. The token's market capitalization holds steady at $2.80 billion, with $177 million in daily volume, as a double bottom pattern and bullish divergence fight against whale-driven volatility. With network activity strengthening the backdrop, AVAX stands at a crossroads where technical resilience meets short-term uncertainty.

AVAX finds support at key levels

AVAX recently rebounded from lows of $6.37, signaling some resilience as buyers step in to defend the lower end of its range. Data shows the $6.35 to $6.40 area has emerged as an important near-term support level. Maintaining a position above this zone could pave the way for a push towards resistance levels at $6.65 and $6.80.

Chart patterns indicate that if AVAX can avoid a drop below support, the token may attempt another upward move. Short-term technicals show the current price action is recovering toward the previous trading range.

Double bottom and bullish divergence support recovery

Technical analysts have highlighted a possible double-bottom pattern on the short-term chart, which is seen as a positive indicator. After forming two consecutive lows, the price bounced, hinting that selling pressure may be waning.

AVAX has posted a solid bounce following two similar lows, suggesting the current zone could mark a shift in momentum as sellers lose ground.

This emerging pattern sets up the prospect of AVAX regaining momentum toward the $7.00 area, provided the price can climb above $6.80. A failure to hold recent lows, however, would weaken the bullish case and hand control back to sellers.

A separate chart on the 4-hour timeframe shows a bullish divergence, where the price is making lower lows while momentum indicators are registering higher lows. Such divergence can point to a decelerating downtrend. If confirmed, this setup would further support the case for a move toward $6.80 and $7.00, with $7.30 as the next possible resistance zone.

Whale activity introduces short-term risk

Despite improving technicals, large transactions by major holders have added caution to the outlook. Industry tracker Nazoku reported that whale wallet Oxadd deposited over $1.1 million in AVAX onto Coinbase within the past hour, raising short-term supply concerns.

Another large investor based in North America recently unstaked almost 3 million AVAX, worth about $20.15 million, from Benqi Finance and transferred the tokens to a fresh wallet. Such activity typically signals the possibility of more tokens entering exchanges, which traders view as a precursor to selling pressure.

Large token transfers do not guarantee a sell-off, but they highlight the importance of the $6.35 support zone as AVAX navigates through increased short-term risk.

Mini dictionary: Benqi Finance, a decentralized non-custodial liquidity market protocol on Avalanche, allows users to lend, borrow, and earn interest on digital assets.

Network activity strengthens AVAX backdrop

Analyst Michaël van de Poppe pointed to broader developments in the Avalanche ecosystem, including a 48% growth in stablecoin supply within a week and a more than 100% increase in BlackRock’s BUIDL fund related to Avalanche. He described this as evidence of accelerating adoption and improving fundamentals for the network.

Recent months have seen rising stablecoin activity and an expanding ecosystem, creating a more positive environment for AVAX price recovery in the medium term.

Van de Poppe also cited a technical formation that, if confirmed, could see AVAX targeting the $10.50 area over time. He cautioned that reclaiming and holding above key resistance levels will be necessary for the token to move toward higher valuations.

Improved network usage and an expanding token ecosystem may eventually increase trader confidence if price action aligns with these fundamentals.

Mini dictionary: BUIDL is BlackRock’s tokenized fund on the Avalanche blockchain, providing exposure to US Treasuries and facilitating on-chain asset management.

Outlook: AVAX awaits confirmation

For bullish technical signals to translate into a sustained move, AVAX must clear the $6.80 resistance convincingly. Breaking through $7.00 would improve the near-term recovery prospects and bring higher target zones such as $7.30–$7.50 into view. Failure to hold above $6.35 would undermine both the double bottom and bullish divergence patterns, especially if accompanied by additional whale inflows to exchanges.

As technical and whale-driven forces compete, market participants are watching closely for confirmation above resistance or renewed selling pressure below support.