Avalanche (AVAX), one of the leading large-cap cryptocurrencies, has experienced a significant price drop of more than 10% within the past 24 hours, making it the top loser among major digital assets. The price of AVAX has fallen from its recent high of $27.90 to $24.86, reaching its lowest point this year. This decline represents a substantial decrease of approximately 60% from its peak of $60.69 earlier this year.
The sharp decline in AVAX’s value is attributed to a substantial selloff initiated by a well-known crypto analyst, ZachXBT. ZachXBT reported that an entity using the wallet address “0x327…94f30” transferred about 1.96 million AVAX tokens, worth $54.2 million, to various cryptocurrency exchanges including Coinbase, Binance, and Gate. These transactions, facilitated by cross-chain bridges like THORChain, have exerted significant downward pressure on the price of AVAX, resulting in a sudden 10% drop.
As of now, Avalanche is trading at $25.20, with a market capitalization of $9.92 billion. Despite the price decline, AVAX’s daily trading volume has surged by over 109%, reaching $509 million. This increased trading activity indicates the market’s heightened response to the recent selloff.
The future of AVAX’s price remains uncertain. If the downward trend continues, AVAX may fall further to a critical support level of $23. A breach of this level could push the price down to $20, a value last seen in November 2023. Such a drop could potentially trigger further declines, with the price possibly sinking to $18.43.
On the other hand, if Avalanche can maintain its current price of around $25, it may initiate a new upward trend towards $28. Reaching this level could pave the way for further gains, potentially climbing to $30. A sustained rally could stabilize AVAX around $35, with the possibility of advancing the range to $40 and even $50 in the longer term.
