Decentralized finance (DeFi) token Avalanche (AVAX) has fallen sharply over the past 24 hours despite bearish sentiment across the cryptocurrency sector.
Notably, the price movement has raised questions about its trigger. At one point, the token dropped dramatically by 10%, with popular crypto analyst ZachXBT sharing his thoughts on the drop.
According to data shared by ZachXBT, the move could be attributed to a whale transferring 1.96 million AVAX tokens, worth approximately $54.2 million, across multiple major exchanges and via cross-chain bridges.
The transaction was recorded on Coinbase, Binance, Gate and through THORChain, which is responsible for bridging some of the AVAX tokens between different blockchains.
Such significant movements, especially by large holders, can have a significant impact on market sentiment and prices, often leading to increased volatility and speculative trading.
AVAX AI Price Prediction
In light of these developments, there is growing interest in understanding the future trajectory of AVAX. To this end, Finnbold is Coin CodeThe platform, which leverages AI-driven machine learning algorithms, is expected to provide a price prediction for AVAX early next month.
according to CoinCodex According to the forecast model, AVAX is expected to trade at $33.82 on July 1, 2024, which is a bullish indicator as the forecast reflects an increase of almost 30% from the current price.
Overall, large transfers of cryptocurrencies onto exchanges often signal a potential sell-off, disrupting the market and causing a sudden drop in asset values. The sheer volume of these transfers highlights the significant impact such actions can have on cryptocurrency prices.
AVAX Price Analysis
At the time of writing, AVAX is trading at $26.12, representing a daily loss of roughly 4.5% and a drop of over 13% for the week.
For AVAX, $25 has been a key support level over the past seven days which held firm on June 21-22. Moreover, in case of a break below $25, the $24 level will remain as a potential psychological support.
The resistance zone between $27.50 and $28 was recorded between June 19-21 when the price struggled to sustain above $28. Moreover, $30 is also another resistance point as the price peaked near $30.27 on June 16.
Disclaimer: The content of this site does not constitute investment advice. Investing is speculative and your capital is at risk when making an investment.
