Avalanche (AVAX) is struggling to defend the $13 support level as bearish technical patterns remain firmly in place, keeping downside risks elevated despite increasing trading activity and steady progress across the network.
At the time of writing, AVAX was trading near $13.20, down slightly over the past 24 hours. Over the last week, the token has fluctuated between $12.87 and $14.63 and is now down about 2.4%. On a monthly basis, losses have deepened to roughly 15%, leaving price action pinned to a support zone that has been tested repeatedly.
Trading activity rises, but price remains weak
While price movement has been limited, trading activity has picked up notably. Avalanche’s 24-hour spot trading volume jumped 41% to around $301 million, signaling increased interest as the token trades near lower levels.
Derivatives data shows a similar trend. Futures volume climbed 21% to $591 million, while open interest edged higher by 1.2% to $515.5 million, according to CoinGlass. This combination suggests traders are opening new speculative positions rather than exiting existing ones a sign of rising leverage rather than strong spot buying.
Network growth fails to translate into price strength
Fundamentally, Avalanche continues to show signs of ecosystem growth as 2025 draws to a close. Activity on the C-Chain has been expanding, total value locked has been trending higher, and the stablecoin supply on the network has surpassed $1.5 billion, indicating fresh capital inflows.
Institutional interest has also increased. AVAX was recently added to the Bitwise 10 Crypto Index ETF, and expanded USDC custody support on the C-Chain has improved accessibility for larger investors. These developments strengthen Avalanche’s long-term case, but they have yet to provide near-term price support.
Broader market weakness continues to overshadow these positives, leaving AVAX exposed to technical pressure.
Bearish technical structure remains intact
From a technical perspective, Avalanche remains locked in a long-term downtrend. Every major rally since AVAX last traded above $30 has been rejected by a descending trendline, reinforcing the bearish bias.
A previously formed rising wedge has already broken to the downside, confirming continued weakness. Price is now compressing around the $13 level, forming a structure similar to a descending triangle. Sellers remain active above current levels, while buyers attempt to defend flat support below a setup that increases the risk of a downside break if support fails.
Momentum indicators remain subdued. The relative strength index sits near 42, below the neutral threshold, suggesting limited buying interest. Trading volume has cooled since the sharp sell-off from the $28–$30 region, indicating that selling pressure has eased but demand remains cautious.
If AVAX breaks below $13 on a sustained basis, the next downside targets could emerge near $11.50, with the $10 level acting as a stronger long-term floor. On the upside, a decisive move back into the $15.50–$16 zone, supported by stronger volume, would be needed to ease near-term bearish pressure.
