AVAX slides as technicals signal prolonged seller pressure

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Avalanche slides 7.91% today to $8.27

Highlights

BlackRock BUIDL tokenized fund balances on Avalanche reached $1.30 billion, indicating substantial institutional capital inflow and external confidence.
Aave temporarily froze its Avalanche lending markets to manage risk after funds from a suspected Binance hacker entered the ecosystem.
AVAX/USD trades below short- and medium-term moving averages with high intraday selling pressure and is projected to range from $8.06 to $8.48 over the next 2 to 3 days, with further downside likely.

Major fund inflows and risk action reshape institutional positioning

Avalanche has recorded a significant institutional milestone, with BlackRock’s BUIDL tokenized fund balances on its network reaching $1.30 billion, according to Martyau79 Substack. This influx of institutional-scale assets demonstrates real capital flows into the Avalanche ecosystem and serves as a marker of major external trust. In parallel, Aave froze its Avalanche lending markets on October 29, 2026 following the arrival of funds linked to a suspected Binance hacker, a risk response that temporarily restricted lending activity, as reported by Cryptobriefing. Additionally, Avalanche’s partnership with Japan Tax Free, JPYC, and UPBOND will enable international visitors in Japan to access tax refunds via the JPYC stablecoin on its C-Chain from November 1, 2026, expanding its utility in the Japanese market and supporting future adoption.

Persistent downside momentum as signals and resistances align bearish

On the technical front, AVAX/USD is trading below both the MA-20 at $8.42 and the MA-50 at $8.68 on the hourly chart, with the price remaining above the MA-200 at $8.18 on the daily. Immediate resistance is located at the Ichimoku Kijun level at $8.54. Momentum indicators confirm a weak setup, with both MACD and ADX signaling sell conditions, RSI at 35.98, CCI in sell territory, and Stochastic RSI neutral. Bull/Bear Power shows dominance by sellers, and the Awesome Oscillator also aligns with the prevailing downside trend.

Sideways trade favored as upside probability diminishes

Looking ahead to the next 2–3 trading days, AVAX/USD is expected to consolidate within a band between $8.06 and $8.48. The probability of an upward move is very low, with downside risk prevailing and a bounce considered unlikely. The baseline forecast is for further sideways consolidation unless a clear breakout above $8.54 occurs, while a drop below $8.06 would signal renewed bearish momentum within the current volatility band.

Anton Kharitonov, expert at Traders Union, notes that Avalanche is seeing clear institutional interest with the BlackRock BUIDL milestone, but overall momentum remains negative. He highlights that technicals show persistent selling pressure and the recent Aave market freeze underscores risk. Despite positive adoption steps in Japan, Kharitonov sees limited upside near term unless key levels are reclaimed. "Until we see a solid breakout above $8.54, I remain cautious and expect further sideways or downward action."

Earlier, analysts noted that Avalanche remained exposed to downside risk amid weak demand signals and lackluster institutional momentum. The latest data reinforce this cautious stance, as technical indicators confirm prevailing seller control and highlight $8.06 as the key level to watch for renewed bearish momentum in the coming sessions.

Source of Data: AVAX Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.