Avalanche (AVAX), once a formidable competitor to Ethereum, has garnered significant attention following a steep decline in the last 24 hours. The cryptocurrency market remains volatile, and AVAX’s sudden price drop has sparked widespread concern among investors and analysts alike.
Why Did AVAX Drop?
The dramatic 10% decrease in AVAX’s price was highlighted by prominent crypto analyst ZachXBT, who speculated on potential causes. Approximately 1.96 million AVAX tokens, valued at about $54.2 million, were transferred to various exchanges through cross-chain transactions, suggesting activity by large-scale holders, commonly referred to as “whales.”
These significant transactions involved major exchanges such as Coinbase, Binance, and Gate, facilitated through THORChain for cross-chain bridging. Historically, such whale movements have the potential to cause notable price fluctuations, indicating that AVAX might face further declines soon.
What Is the Price Prediction for AVAX?
The future trajectory of AVAX’s price remains a subject of speculation. According to AI algorithms from CoinCodex, AVAX’s price could see an increase, potentially reaching $33.82 by July 1, 2024, which would represent a 30% rise from the current levels. This prediction stands despite recent whale-induced downward trends, highlighting the complex dynamics at play.
Concrete Insights
Key Takeaways for Investors:
- Monitor significant token transfers as they can indicate potential price changes.
- Be aware of key support and resistance levels to make informed trading decisions.
- Consider using AI-based predictions to complement traditional analysis methods.
Current Price Status
At the time of this writing, AVAX is trading at $25.82, marking a 5.45% drop in the past 24 hours and over a 13% decline over the last week. The $25 level has proven to be a critical support over recent days, with potential psychological support at $24 if this level is breached. Resistance levels between $27.50 and $28 remain crucial, as the price has struggled to maintain above $28.
In contrast, the price climbed to $30.27 on June 16, establishing $30 as a significant resistance point following a subsequent pullback.