📉 Bearish Sentiment Weighs on AVAX
Avalanche (AVAX) has struggled in the current market, dropping 35% over two months from $53 to $35. Traders are leaning heavily on short positions, reflecting bearish sentiment as bulls appear exhausted.

💸 Major Liquidation Areas
Key liquidation levels are near $34.72 and $36.52. If AVAX drops to $34.72, $690K in long positions could be liquidated. Conversely, a rise to $36.52 would liquidate $3.6M in short positions, showing dominance by short sellers.

📊 Technical Analysis Highlights Risks
AVAX is trading near $35, at the neckline of a bearish head-and-shoulders pattern. The 200 EMA provides support, but if AVAX closes below $34, it could drop 17% to $28.50. The RSI at 42 suggests some strength, leaving room for a rebound.

🔑 Key Levels to Watch
Holding above $34 is critical for AVAX to avoid a deeper decline. Historical momentum at this level suggests a chance for upside, but failure to hold could confirm a bearish breakout.

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