Avalanche (AVAX) price slides amid rising open interest, short‑term bullish signs vs bearish weekly trend

Avalanche (AVAX) fell about 4.9% in the past 24 hours, breaking the $6.50 support level and slipping below $6.40. The decline occurred alongside a rise in open interest, a noticeable drop in spot CVD and funding rates turning negative, indicating growing short‑selling pressure.

Technical analysis shows a short‑term bullish breakout near $6.65, with the Supertrend indicator flipping bullish, MACD crossing upward and volume spiking. Resistance lies between $6.70‑$6.80, with a possible move toward $7.20 if the price holds above this band. However, the weekly chart remains in a descending channel, RSI stays below 40 and the Chaikin Money Flow is negative, signaling that the longer‑term trend is still bearish. A decisive weekly breakout above the $10.20 level would be needed for a major shift in the longer‑term outlook.