Avalanche is on track to reach its crucial support level of $23.34 if its market performance continues to decline, as it has done in the last 24 hours. According Wu BlockchainResearch from ZachXBT has revealed what could be driving Avalanche’s rapid price decline.
Avalanche is on track to reach its crucial support level of $23.34 if its market performance continues to decline, as it has done in the last 24 hours. According Wu BlockchainResearch from ZachXBT has revealed what could be driving Avalanche’s rapid price decline.
Major transfers affecting Avalanche
At the time of writing, Avalanche is changing hands for $25.34, down 8.34% in the last 24 hours.
Yuri MolchanThe sharp drop has been attributed to several factors. Mainly, the reason for this drop appears to be the actions of an entity (“0x32…4f30”) that began transferring 1.96 million AVAX to exchanges such as Coinbase, Binance, and Gate.
The value of the transferred asset amounts to $54.2 million based on the current market price. An investigation revealed that the entity used cross-chain bridges such as THORChain for transfers. The move has further aggravated the bearish market sentiment around AVAX.
This transfer has caused a notable drop towards the critical support level of $23.34, as it is just $2 away from surpassing it. Analysts believe that if that happens, the Avalanche will have more downsides to worry about.
Avalanche historical performance and recent trends
This continued downward movement bothers Avalanche, given that it was one of the biggest gainers in the first quarter of the year. In particular, the blockchain platform is experiencing a steady decline, as data reveal that since May 23, when the price was $38.31, it has not been able to reverse its upward trend.
Yuri MolchanInterestingly, according to the May market rankings, Avalanche pushed the dog-themed coin Shiba Inu out of the top 10 as it rose over 18% in value. Market experts say that the current drop in AVAX value is a testament to market volatility, in this case, the massive transfer initiated by the entity (0x32…4f30).
However, investors are advised to watch the key support level and make decisions based on the price movement around it.
