Avalanche’s native cryptocurrency AVAX has experienced a significant downward trend, dropping by 15% over the last week and an additional 6% in the last 24 hours. The price of AVAX is currently at $24.24 with a market cap of $9.5 billion. Analysts predict that AVAX could correct by up to 50% from its current levels, with technical indicators showing weakness and the formation of a bearish head-and-shoulder pattern.
Crypto analyst Crypto Patel has warned investors about the potential for further downside in AVAX, with targets of $19 and $13. He advises caution for those looking to build long positions after the recent correction and suggests using strict stop losses on trades. The AVAX/USDT chart analysis indicates a bearish trend with the neckline support being broken, signaling a potential 40%-60% downside move.
One of the main reasons behind the recent price drop in AVAX is attributed to whale activity by an entity known as “0x32…4f30” who transferred a massive 1.96 million AVAX coins to top crypto exchanges like Binance, Coinbase, and Gate. The value of this transfer amounts to around $54.2 million based on the current market price. The entity utilized cross-chain bridges such as THORChain for the transfers, further contributing to the bearish sentiment in the market.
As a result of the recent correction and whale activity, Avalanche’s market capitalization has fallen below $10 billion, trailing behind other altcoins like Tron (TRX) and Shiba Inu (SHIB). The project has lost nearly $14 billion in value since mid-March, highlighting the volatility and challenges faced by the cryptocurrency market. Investors are advised to trade cautiously and stay informed about market developments to make informed decisions amidst the current market conditions.
