Avalanche price analysis (Bearish) — 12.96 USDT (-7.96% 24h)

AVAX is experiencing severe technical distress, with its price of $12.96 representing a sharp 7.96% decline over the last 24 hours. The most alarming metric is the RSI reading of approximately 12, which indicates the asset is in deeply oversold territory and has likely experienced a capitulation event. Price is trading well below both the 20-day SMA ($13.64) and 50-day SMA ($14.13), confirming a strong bearish trend structure. While the high 24-hour volume of nearly $44 million suggests significant selling pressure, it could also hint at potential exhaustion. For traders, this presents a high-risk, high-reward scenario. Aggressive contrarians might consider scaling into a long position here, given the extreme RSI, but must use tight stop-losses below recent lows. More conservative traders should wait for a confirmed bullish reversal pattern or a reclaiming of the $13.60 SMA20 level before considering any entry. The current volatility suggests sharp moves are likely to continue.