Avalanche (AVAX) Nosedives 8% Amid Probe Into Large Token Transfers

Avalanche is on track to reach its crucial support level of $23.34 if its market performance continues on a decline, as it has over the last 24 hours.

As per recent analysis by Wu Blockchain, an investigation by ZachXBT may have uncovered the reason behind the rapid decline in the price of Avalanche (CRYPTO: AVAX).

What Happened: While reporting on the worsening market performance of Avalanche, which saw an 8.34% decrease in the past 24 hours, several factors were highlighted as contributing to the sharp decline.

The analysis pinpointed the actions of an entity ("0x32…4f30") that began transferring 1.96 million AVAX to exchanges such as Coinbase (NASDAQ:COIN), Binance and Gate.

At the time of the report, and based on the current market price, the transferred asset is valued at $54.2 million. An investigation revealed that the entity utilized cross-chain bridges like THORChain for the transfers.

The movement has further aggravated the bearish market sentiment surrounding AVAX. This decline is particularly noteworthy as it brings Avalanche closer to its crucial support level of $23.34, with barely $2 left before breaching it.

Analysts have noted that if the support level is broken, there will be more downsides for Avalanche to contend with.

Importance Of Historical Performance: This continued bearish movement is upsetting to Avalanche given that it was one of the top gainers in the first quarter of the year.

Notably, the blockchain platform is undergoing a steady decline, as data reveal that from May 23, when the price was $38.31, it has not been able to flip its bullish trend.

Interestingly, per the May market Rankings, Avalanche nudged Shiba Inu (CRYPTO: SHIB), the dog-themed coin, out of the top 10 as it climbed up by more than 18% in value.

Market experts say the current decline in AVAX value attests to the volatility of the market, in this case, the massive transfer initiated by the entity (0x32…4f30).

Investors are, however, advised to observe the key support level and make decisions based on price movement around it.

News source：https://www.kdj.com/cryptocurrencies-news/articles/avalanche-avax-nosedives-probe-token-transfers.html

The above is the detailed content of Avalanche (AVAX) Nosedives 8% Amid Probe Into Large Token Transfers. For more information, please follow other related articles on the PHP Chinese website!