Avalanche's (CRYPTO:AVAX) current price stability above $50 is under threat as potential bearish trends could push it below this crucial support level, endangering over $1 billion in AVAX holdings.

With nearly 22 million AVAX purchased between $51 and $56, a dip below $51 could shift these investments from potential gains to definite losses, highlighting the precarious position of Avalanche's market value.

The significant portion of AVAX, approximately 34.15% of the circulating supply, held by short-term traders, introduces volatility, as their propensity to sell could trigger a notable price decline.

The Global In/Out of Money (GIOM) metric underscores the critical price points for AVAX, indicating that a fall below $51 would significantly impact investor holdings and could lead to a broader sell-off.

As AVAX teeters on the edge of losing key support levels, the crypto community watches closely; a drop could lead to testing lower supports at $47, while a recovery above the 50-day EMA might renew bullish momentum, challenging the bearish outlook.