Avalanche (AVAX) has recently witnessed a significant 5% decline in the past 24 hours, with a further drop of 9.1% over the course of the week. Currently valued at around $25.74, the digital currency’s downward trend has sparked widespread speculation regarding the reasons behind this shift.
An investigation conducted by ZachXBT has revealed that AVAX plummeted by 10% in a short period due to a massive transfer of 1.96 million AVAX (equivalent to $54.2 million) by an entity with the wallet address “0x32…4f30” to exchanges like Coinbase, Binance, Gate, and through cross-chain bridges like THORChain.
The market outlook indicates that Avalanche is approaching a crucial support level at $23.34, a point closely monitored by investors and analysts. Falling below this threshold could indicate further price declines, especially in light of recent investigative reports shedding light on potential reasons for the sudden market movements.
ZachXBT’s detailed analysis, shared by Wu Blockchain, highlights the significant impact of the entity’s transfer activity on Avalanche’s price. The heavy movement of assets across exchanges through cross-chain bridges has exerted downward pressure on the digital currency, potentially fueling bearish market sentiments and pushing prices towards a key support level.
With Avalanche currently far from its all-time high and the importance of the impending support level, the market’s reaction in the coming days will be crucial. Observers and participants are eagerly awaiting to see if the downward pressure eases or if breaching the support level could trigger further losses.
