Avalanche (AVAX) has started July with renewed buying interest, staging a rebound from the crucial psychological support at $6.00 after weeks of relentless selling pressure. This bounce has encouraged traders to look for a stronger recovery, but the broader trend remains cautious as the token continues to trade below all major moving averages.
The recent upward move has pushed AVAX toward the 20-day exponential moving average, yet the overall market structure still reflects a sequence of lower highs, indicating that sellers retain control. Bulls must reclaim the $6.65 resistance level to meaningfully shift momentum and confirm a trend reversal.
Adding to the caution, open interest in AVAX remains weak and steady outflows suggest limited commitment from participants. These factors keep the broader outlook restrained, with any sustained recovery contingent on a decisive break above key technical hurdles.
