AVAX Price Tumbles to Early 2021 Lows Amid Market Liquidation

The cryptocurrency market has experienced significant price declines in recent days, with AVAX being one of the most affected assets. On [date], the price of AVAX plunged to its lowest level since early 2021, falling below $6.26.

This decline is attributed to a broad crypto market liquidation that wiped out key support near $8. The market's bearish sentiment is further emphasized by over 70% of traders holding short positions, indicating expectations of further decline.

The current price level has raised concerns among traders, who are closely watching the $6.25 support level. A break below this level could lead to further declines towards $5.46 and $4.68. Conversely, reclaiming levels above $8.20 is needed to signal a potential recovery.