The digital currency Avalanche (AVAX) has recently experienced a significant drop of 5% in the last 24 hours, and a further 9.1% decrease over the past week. Currently, the price of AVAX is hovering around $25.74, which has sparked discussions about the reasons behind this downturn.
Investigations conducted by ZachXBT have revealed that AVAX has fallen by 10% in the past few hours, likely due to an entity with the wallet address “0x32…4f30” transferring 1.96 million AVAX (worth $54.2 million) to popular exchanges like Coinbase, Binance, Gate, and using cross-chain bridges like THORChain for transfers.
The current market trajectory suggests that Avalanche is approaching a critical support level at $23.34. This level is being closely monitored by investors and analysts because breaking below it could indicate further declines. The urgency of the situation is heightened by recent investigative reports that have shed light on the potential reasons behind the sudden price movements.
ZachXBT, a renowned crypto investigator, has provided insights into AVAX’s price movements through an analysis shared by Wu Blockchain. The investigation has identified an entity with the wallet address “0x32…4f30” as the key player behind the transfer of nearly 1.96 million AVAX (~$54.2 million) to major exchanges like Coinbase, Binance, and Gate.
These large-scale transfers, facilitated through cross-chain bridges like THORChain, are exerting downward pressure on Avalanche. Such movements across exchanges have significant consequences as they tend to fuel bearish sentiment in the market and push prices lower, potentially reaching a major support level.
Considering how far Avalanche is from its all-time high and the importance of this specific support level, the market’s reaction over the next few days will be crucial. Market watchers and participants are eagerly waiting to see if the downward pressure will ease or if breaching the key support level could lead to further losses.