Avalanche's native token AVAX has dipped to $6.73, marking a relative strength index (RSI) of 20.69 — a level that usually signals an asset is oversold. The reading comes as large holders, commonly called whales, have piled into long positions, with data showing 66.2% of their bets are now bullish.
Whale positions hint at a turn
The whale accumulation is notable because it suggests deep-pocketed traders are betting on a price recovery after weeks of decline. When the RSI drops below 30, markets often view it as a buying opportunity, though it's not a guarantee. The current RSI of 20.69 puts AVAX in territory that has historically preceded short-term rallies.
Technical setup points to $8.50
Technical indicators from on-chain and chart analysis suggest AVAX could bounce toward the $8.50 resistance level in the coming sessions. That would represent a roughly 26% gain from today's $6.73. However, the move depends on broader market conditions and whether buying momentum can sustain above key support zones.
The token has been under pressure alongside the wider crypto market, but the combination of a deeply oversold RSI and whale accumulation often catches the attention of swing traders. Whether the bounce materializes or the downtrend continues will likely become clearer in the next few trading days.
