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AVAX Shows $0.636 Short-Term Bubble Risk as Traders Track New Cycles

AVAX Shows $0.636 Short-Term Bubble Risk as Traders Track New Cycles

Cryptonewsland2025/12/12 03:30
By: by Yusuf Islam
AVAX-2.38%WAVES-2.48%
  • AVAX holds a 0.636 risk level, as the chart reveals repeated cycles where short-term heat fades, and new waves take form across several zones.
  • The pattern shows red and yellow zones where traders saw rising heat, while deep blue phases marked cooler stretches with lower near-term pressure.
  • AVAX now sits near a mixed zone as price action forms a new band that traders follow to see if fresh demand can guide the next move upward.

AVAX showed a short-term bubble risk reading of 0.636 as the latest chart revealed changing sentiment cycles and a series of heat zones that shaped price behavior from early 2021 through late 2025. The visual tool used in the image-mapped AVAX price swings against multiple risk bands that ranged from deep blue cooling phases to high heat red spikes connected with major market peaks.

The latest reading placed AVAX in a bearish state, which indicates subdued short-term strength as traders watch how the current pattern evolves into the next market phase.

Risk Waves Form Repeated Cycles Across the Chart

The chart presented clear rhythmic behavior where AVAX moved through sequences of rising heat followed by cooling pressure, which often matched turning points in price action. Red zones showed moments when risk readings exceeded 2.0, which historically aligned with sharp tops while yellow and orange zones showed rising pressure that signaled elevated demand before new cooling phases took hold.

$AVAX Short Term Bubble Risk pic.twitter.com/Gj3MqGW2WZ

— Into The Cryptoverse (@ITC_Crypto) December 10, 2025

Deep blue areas represented readings below 0.5, which formed during extended periods of loss or slow accumulation. These zones appeared around major resets in mid-2021, late 2022, and late 2024 when prices retreated into multi-month lows.

Green and light blue areas formed during moderate-risk phases, where AVAX started to build strength without reaching overheated levels. These zones often acted as bridges between major cycles and provided traders with early signals that a shift was underway.

Price Patterns Reveal Key Turning Points

The image plotted the AVAX price from below 4 dollars in early 2021 to the peak above 100 dollars later that same year. This was followed by several large swings that moved across the full range of risk bands.

During each peak, the chart recorded large clusters of orange and red readings, which mapped periods where short-term heat reached extreme territory. Traders monitored these spikes closely because they often signaled limited remaining upside.

Cooling phases formed whenever risk readings fell beneath 1.0, and deep blue zones filled the chart during long resets. These reset phases mirrored the broader cycle structure seen in many digital assets and provided traders with frameworks for interpreting future behavior.

Current Reading Points to a New Market Phase

The latest value of 0.636 placed AVAX in a mild cooling phase where pressure remains contained, yet movement could shift quickly if demand pushes risk levels toward yellow zones.
The pattern shows mixed readings near the current timeframe with small patches of yellow that formed during recent price attempts to regain higher levels. This mixed area indicates early strength yet does not reflect the kind of sustained heat seen in earlier peaks.

The key question now is whether AVAX can escape the cooling band and form a new buildup sequence similar to earlier cycles, where moderate green zones appeared before strong pushes into higher price regions.

AVAX traders continue to watch the latest risk reading as the tool signals a market that seeks direction, while historical cycles show how each rise or reset formed across the chart.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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