Avalanche (AVAX) has recently encountered a notable decline, dropping by 5% in the past 24 hours and extending to a 9.1% decrease over the course of the week. Currently, the price of this digital currency hovers around $25.74, sparking widespread discussions about the reasons behind this downward trend.
An investigation conducted by ZachXBT reveals that AVAX has experienced a 10% fall in the past few hours. This decline is likely attributed to an entity with the wallet address “0x32…4f30” transferring 1.96 million AVAX, valued at $54.2 million, to prominent exchanges such as Coinbase, Binance, and Gate. Additionally, this entity has utilized cross-chain bridges like THORChain for these transfers.
The current market trajectory suggests that Avalanche is approaching a significant support level at $23.34. This critical juncture is being closely monitored by both investors and analysts, as a breach of this threshold could indicate further declines. Recent investigative reports have shed some light on the potential reasons behind these sudden price movements, adding to the urgency of the situation.
Renowned crypto investigator ZachXBT, in collaboration with Wu Blockchain, has provided valuable insights into AVAX’s price movements. Through a detailed analysis, they have identified the activities of a specific entity associated with the wallet address “0x32…4f30.” This entity is responsible for transferring almost 1.96 million AVAX, equivalent to approximately $54.2 million, to leading exchanges Coinbase, Binance, and Gate.
These significant transfer activities, primarily executed through cross-chain bridges like THORChain, have exerted downward pressure on Avalanche. The consequences of such large-scale movements across exchanges are substantial, often fueling bearish sentiment and driving prices lower towards crucial support levels.
Considering the considerable difference between Avalanche’s current price and its all-time high, the reaction in the coming days will be crucial. Market observers and participants are eagerly awaiting to see if the downward pressure will diminish or if breaching the key support level could potentially lead to further losses.