AVAX, the native token of the Avalanche network, is trading at $6.34, down sharply from the levels that once supported a December analyst target of $13.22. That target is now widely considered distant, and technical indicators point to more downside ahead, with the next predicted stop at $5.98.
Moving Averages Stack the Deck
Every major moving average on AVAX's chart is stacked above the current price. That's a textbook bearish setup. When shorter-term averages sit below longer-term ones, and all of them hover above the spot price, it typically means sellers are in control and any rallies face stiff resistance overhead.
The price hasn't been able to reclaim any of those levels recently, leaving the token to drift lower. For traders who watch these signals, the message is clear: the path of least resistance is down.
Sellers Outpace Buyers Nearly Two to One
Order book data shows takers are dumping at nearly double the pace of buyers. That means market participants hitting bids are far more aggressive than those lifting offers. It's a lopsided flow that usually accelerates declines rather than slowing them.
When sellers dominate at this rate, any bounce tends to get sold into quickly. That's exactly the kind of pressure that can push a token toward its next technical support level.
Sentiment Turns Decisively Bearish
Overall market sentiment for AVAX is bearish. The chart belongs to the bears, as one trader put it, with no sign of a reversal pattern emerging. The December target of $13.22 isn't just out of reach—it's off the radar for most near-term forecasts.
Instead, attention has shifted to the $5.98 level, the next stop that technicians are watching. Whether that holds or breaks will likely depend on whether buying interest returns or sellers keep pressing.
For now, AVAX remains under pressure, and the data offers little reason to expect a change in direction soon. The next few trading sessions will show if the $5.98 mark becomes a floor or just another waypoint on the way down.
