Avalanche – 27% crash, $222mln wiped – Here’s why bulls still eye $30!
The post Avalanche – 27% crash, $222mln wiped – Here’s why bulls still eye $30! appeared on BitcoinEthereumNews.com.
Key Takeaways What caused AVAX’s sharp 27% crash? A sudden market shock flipped risk sentiment, liquidating overexposed AVAX longs, despite smart money already stacking for a breakout around $25. Why is Avalanche showing signs of a rebound? Strong spot demand and heavy on-chain accumulation shook out weak hands, with bulls taking back control around the $22 bid wall. Avalanche [AVAX] pulled off a nasty crash, catching bulls off guard. As AMBCrypto highlighted, smart money was actively accumulating AVAX during its sideways consolidation around the $25 level, with roughly $6 million in strategic accumulation, positioning for a potential breakout. However, the timing proved disastrous. Following the market shock, risk sentiment shifted sharply, triggering a broad sell-off. AVAX was not spared. It plunged 27%, emerging as one of the worst-hit assets in the downturn. Source: TradingView (AVAX/USDT) The domino effect? About $222 million in 24-hour liquidations, with 93% coming from long holders. Not too surprising. Bulls were already stacked for a breakout while AVAX chopped sideways for two weeks. Looking at the AVAX/USDT perpetuals on Binance, the long skew was clear. Roughly 70%+ of positions were long over the past month, meaning a ton of overexposed leveraged bets were sitting just under the price. If the Spot bid stays solid, this could turn into a textbook leverage flush. Weak hands shaken out, strong hands absorbing the supply. The question is, will bulls double down for a breakout, or does the FUD keep them sidelined? AVAX accumulation signals bulls aren’t done yet In just five minutes, AVAX bulls flexed hard. During the market bleed, Avalanche dumped 50% down to $10, but then staged a staggering 143% snapback in the next five minutes, reclaiming a $22 valuation. On-chain flows confirmed the action. DeFiLlama showed token Volume spiking from $589 million to $2.8 billion at…
Filed under: News - @ October 12, 2025 5:05 am