|
Getting your Trinity Audio player ready...
|
- AVAX plunged 27%, triggering $222M in liquidations.
- Bulls staged a 143% rebound within minutes, reclaiming $22.
- Rising spot demand and cleared leverage could fuel a move toward $30.
Stay ahead with real-time updates and insights—Join our Telegram channel!
Avalanche [AVAX] delivered a sharp blow to bullish traders after a sudden 27% plunge wiped out millions in leveraged positions. Around $222 million in liquidations hit the market within 24 hours—93% of them from long holders who had been anticipating a breakout. For weeks, AVAX hovered near $25 as “smart money” quietly accumulated roughly $6 million worth of tokens, expecting an upside move. Instead, the market shock triggered a massive risk-off wave that sent prices tumbling and bulls scrambling.
A Brutal Shakeout Clears the Leverage
Data from Binance’s perpetual markets revealed that over 70% of open positions had been long throughout the month. That leverage imbalance set the stage for a textbook “flush” once prices dropped. The cascade forced weak hands out of the market—precisely what seasoned traders call a “reset” phase. With most overleveraged positions wiped clean, the path could now favor more sustainable upside momentum, provided spot demand remains firm.
Also Read: Whales Accumulate $6M in AVAX as Avalanche On-Chain Activity Surges Past $950B
Bulls Fight Back With Aggressive Rebound
What happened next surprised even seasoned traders. Within minutes of the steep decline, AVAX collapsed nearly 50% to $10—only to rebound 143% in five minutes, reclaiming the $22 level. On-chain data confirmed massive buy-side activity. DeFiLlama showed Avalanche’s trading volume surging from $589 million to $2.8 billion in just hours, signaling strong accumulation. Decentralized exchange (DEX) volume also spiked to $827 million, the highest in two weeks, reflecting renewed trader confidence.
🚨NOW: $AVAX saw its largest single-day DEX Volume in 2 weeks. pic.twitter.com/iBsPn8DTht
— Marc Shawn Brown (@MarcShawnBrown) October 11, 2025
AVAX Eyes Recovery Toward $30
With leverage flushed and fresh bids stacking around $22, AVAX appears to be stabilizing. Bulls are once again building positions, hinting at confidence in a potential breakout toward the $30 range. If this momentum holds, what started as a painful crash could end up being the shakeout that resets the stage for a stronger, more sustainable rally.
Stay ahead with real-time updates and insights—Join our Telegram channel!
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
