Avalanche (CRYPTO:AVAX) faces a critical juncture as its price hovers around the $30 support level, instilling concern among investors amid Bitcoin's (CRYPTO:BTC) recent correction.

Technical analysis indicates that a drop below $30 could trigger significant liquidations and further price decline.

On-chain metrics reveal increased trading activity and reduced confidence among investors, with many small holders currently at break-even or in losses.

Traders are advised to monitor Bitcoin's movements closely, as its performance could heavily influence AVAX's price trajectory in the near term.

A bearish scenario suggests potential further decline to $25, prompting cautious entry strategies and risk management tactics among traders.