Three Things to Know

• An attacker drained about $1 million in USDC from a vault built on Avalanche.

• AVAX now trades below both of its key moving averages, while LINK still clings to its long-term line.

• The nearest AVAX floor may decide whether the slide speeds up.

An attacker emptied a lending vault on Avalanche on Tuesday evening, security firm Blockaid said. The vault's operators have stayed silent so far.

The loss is modest, but it lands on two tokens already sliding for a month. Sellers control momentum on both charts. Traders now want to know which coin cracks support first, and whether LINK's sturdier trend can hold.

Flash Loan Drains About $1 Million From an Avalanche Tranche Vault

The attacker took about $1.01 million in USDC from the vault on the evening of Oct. 27 ET. The tool was a flash loan, a large uncollateralized loan borrowed and repaid within one transaction. The attacker used it to mint inflated tranche shares, then redeemed those shares for the vault's USDC across roughly two transactions.

Security firm Blockaid flagged the attack in a post on X at 9:07 p.m. ET. The firm called the exploit "ongoing" and described the loss as a running total. Blockaid said the vault was "related to" Valinor Digital and Fence, without saying which one operates it. Neither company had commented at the time of writing.

It remains unclear whether the vault was paused or whether funds can be recovered. The number of affected depositors is also unknown. The case recalls February 2023, when Platypus lost about $8.5 million in a flash-loan exploit on Avalanche.

The new drain is small, but it adds another security dent to Avalanche sentiment just as the chart looks fragile.

AVAX Slips Under Both Averages With $8.26 in Sight

Avalanche (AVAX) daily price with the nearest support (green) and resistance (red). Source: TradingView

AVAX traded near $8.86, down about 1% on the day. The weekly loss stands near 9%, and the token has shed roughly 19% over the past month. That steady slide has pushed the price under both of its key moving averages.

The 50-day average sits near $9.42. The 200-day is lower, around $9.12. A moving average smooths out daily noise to show the underlying trend. With AVAX below both lines, each one now acts as a ceiling. Trend readings show a downtrend taking shape, with sellers in the lead.

Momentum tells the same story. RSI, a 0 to 100 gauge of momentum, reads 36. That is weak, but it sits above the 30 mark that signals oversold conditions. In plain terms, sellers still have room to push before the market looks stretched. MACD also remains below its signal line, so momentum is still pointing down.

On the daily chart, the nearest floor sits near $8.26. A clean break there would open the way toward $7.04, the next support. That gap is wide, so a failure at the first level could speed up losses.

Bulls face a two-step repair job. They first need to reclaim the 200-day line, then push through resistance near $9.76. Only a move above that level would break the pattern of lower highs. Beyond it, the next ceiling waits around $11.12.

For now, the vault drain gives buyers little reason to step in early. The burden sits on them to defend support.

Chainlink Still Holds the Long-Term Line AVAX Already Lost

Chainlink (LINK) daily price with the nearest support (green) and resistance (red). Source: TradingView

LINK traded near $11.55, flat on the day. The token is down about 6% this week and roughly 18% over the past month. Those losses match the broader pullback, but the chart holds up better than AVAX.

The 50-day average sits near $12.22, above the price, so it now caps rallies. The 200-day line around $11.00 still sits below LINK. That long-term average acts as a floor under the trend, which AVAX no longer has.

Momentum looks similar to AVAX. RSI reads 39, a weak level that still leaves room before oversold territory. Trend readings also show a downtrend led by sellers. The flat session hints at a pause, though not yet a turn.

Support sits near $10.91, just under the 200-day line. That tight cluster makes the zone important. A daily close below both would expose the next floor around $9.75.

Buyers need to clear the 50-day first. Resistance then waits near $12.71, with a higher ceiling around $13.60. A move through those levels would show sellers losing their grip.

Which Support Breaks First Decides the Week

Both coins now sit close enough to support that the next few daily closes should settle the direction.

• Bullish: AVAX climbs back over its 200-day line and runs toward first resistance, while LINK retakes its 50-day and heads for its nearest ceiling. The setup fails if either coin closes under its first support.

• Bearish: AVAX loses its nearest floor, and LINK slips below both its 200-day line and support. That would open the lower targets on each chart. A recovery above both 50-day averages would cancel this view.

Sellers Keep the Edge Until Support Proves Otherwise

Both charts still lean bearish. LINK looks the sturdier of the two because its long-term average still holds underneath. AVAX has no such cushion left.

The risk runs mostly one way. Fresh details on the vault exploit, or a sharp move across the wider market, could push either coin through support faster than the charts suggest.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source: Crypto Daily