Support Collapse in Avalanche

$AVAX broke below its nearest 4H support level at $7.22, signaling a shift in short-term momentum. The asset now trades near $7.05, with 24h losses at 3.87% and volume holding steady at $151M. This level had been holding as a critical floor for intraday traders; its violation suggests either a flush lower or a transition into a new trading range.

The breakdown occurred during what appears to be a decisive London session selloff, with no meaningful bounce attempts back to $7.22. Price is currently testing the $7.05 area, which now functions as a provisional support zone. Traders watching this breakdown are monitoring whether $AVAX holds above $7.00 as a psychological floor or continues lower.

The Next Structural Level: $6.32

If selling pressure accelerates, the next defined structural support sits at $6.32 - approximately 10.3% below current prices. This level represents a previous swing low or a key Fibonacci extension; it is where institutional support is likely to be clustered if the current breakdown turns into a sustained downtrend.

Price reaching $6.32 would signal a break of both the 4H and daily chart structures, confirming a shift from correction into potential downtrend territory. The gap between $7.05 and $6.32 is large enough that intermediate resistance could form at $6.70 or $6.50, offering tactical short-term traders exit or re-entry levels on bounces.

What to Watch on Structure

The pattern forming is a classic break-and-test scenario. If $AVAX bounces back above $7.22 in the next few candles, that would signal rejection of the breakdown and potential reversal back toward $7.50 or higher. However, if price closes a 4H candle below $7.05 without recovery, the conviction toward $6.32 increases.

Volume at $151M is moderate; a spike in volume on the move lower would confirm institutional conviction in the breakdown. RSI and MACD divergence should be monitored - if RSI is oversold (sub-30) while price is still falling, that suggests capitulation and potential bounce setup. Conversely, if RSI remains elevated on lower prices, that signals weak selling and chop.