Avalanche's AVAX token is trading at $6.92, a price that sits near a critical inflection point. A previously predicted drop to $6.41 never materialized, and sell-side momentum is visibly exhausting. Smart money is now 69.8% long on the token.
Why the $6.41 target didn't hold
The bearish target of $6.41 had been widely expected, but AVAX never reached it. Instead, selling pressure faded before that level, and the token stabilized above $6.50. The failure of that scenario has shifted the near-term outlook for the cryptocurrency.
Smart money leans heavily long
Data shows that larger, typically institutional positions are 69.8% long on AVAX. That means the majority of what's considered smart money is betting on a price increase. At the same time, the exhaustion of sell-side momentum gives buyers a potential opening to push higher.
The $7.25 resistance line
The next major test is $7.25. According to the available data, that level is a key resistance that will decide the next 30% move in AVAX. If the token breaks above it, traders expect a significant rally. If it fails, the token may remain range-bound or revisit lower support.
The coming trading sessions will show whether AVAX can challenge $7.25. If it does, the recent bearish narrative could rapidly reverse.
