- Avalanche’s native cryptocurrency AVAX faces significant downward pressure, dropping to its lowest point in six months with a 15% correction in the past week.
- Technical analysis suggests AVAX could see an additional 50% decline from its current price levels.
- The steep price drop is linked to a single entity transferring 1.96 million AVAX to leading exchanges like Binance.
Discover the latest plunge in Avalanche’s AVAX, its technical forecast, and the colossal whale movements causing the downturn. Stay updated with critical insights on potential future corrections and strategic trade advice.
Avalanche’s AVAX Price Nosedives to New Lows
The value of Avalanche’s native token, AVAX, has undergone a sharp decline, shedding 15% of its price over the past week. As of today, the AVAX price has plummeted by an additional 6%, closing in around $24.24, with its market capitalization now at $9.5 billion.
Forecasting a Potential 50% Drop in AVAX
Over the past month, AVAX has seen a dramatic 36% price drop, retracing to levels last witnessed six months ago in December 2023. Technical indicators are flashing red, suggesting a further potential dip of up to 50% from current rates.
Crypto analyst Crypto Patel highlights the formation of a head-and-shoulders pattern on AVAX’s technical chart, which strongly suggests a continuing bearish trend. Patel predicts that AVAX could further drop down to the $19 and $13 price levels due to the breakdown of key support lines.
Patel advises investors to approach AVAX positions with caution following the recent steep decline. Strict stop-loss measures are recommended for all traders dealing with Avalanche trades.
Influence of Whale Transactions on AVAX
The primary catalyst behind AVAX’s recent price depreciation appears to be large-scale transactions by a major market player identified as “0x32…4f30”. This entity transferred a substantial 1.96 million AVAX tokens to top exchanges, including Binance, Coinbase, and Gate.io.
These massive transfers, valued at approximately $54.2 million based on current prices, were facilitated using cross-chain bridges such as THORChain. Such movements have considerably impacted Avalanche’s market position, reducing its valuation below $10 billion and placing it behind cryptocurrencies like Tron (TRX) and Shiba Inu (SHIB).
Since mid-March, Avalanche has witnessed a significant erosion in its market cap, losing almost $14 billion in value amid ongoing market corrections.
Conclusion
In conclusion, the current outlook for Avalanche’s AVAX remains bearish with potential further declines looming. Investors are advised to remain cautious while considering AVAX investments and to employ strict risk management practices. With significant whale activities affecting prices, the Avalanche market could face turbulent times ahead. Stay informed, trade wisely, and keep an eye on the technical indicators for better trading decisions.
