Avalanche’s market performance has been on a downward trend over the past 24 hours, raising concerns as the price nears a critical support level of $23.
Recent findings by blockchain investigator ZachXBT, reported by Wu Blockchain, shed light on the possible reasons behind this sharp decline.
According to the report, $54 million worth of AVAX was sold today. The AVAX in question, located at address 0x32…4f30, originated from the transfer of X-avax1qsnptt6yxnwmh8up7xn5u3sajz37lmyv8u3dmu on the Avalanche-X chain. @VeriDelisi has speculated that this address is linked to a Turkish exchange, potentially indicating significant sell-offs from this source.
Today, 54 million USD of AVAX was sold. The AVAX at 0x32…4f30 originated from the transfer of X-avax1qsnptt6yxnwmh8up7xn5u3sajz37lmyv8u3dmu on the Avalanche-X chain. @VeriDelisi believes that this address is the address of a Turkish exchange. https://t.co/9vlyQuMXXy
— Wu Blockchain (@WuBlockchain) June 22, 2024
ZachXBT has been monitoring an address suspected to be involved in the large-scale movement of 1.96 million AVAX, equivalent to $54.2 million. This entity has been transferring AVAX to platforms like Coinbase and THORChain. Following these AVAX deposits, the same entity reportedly withdrew over $46 million worth of Bitcoin from Coinbase and Binance.
I think the culprit is likely this address I have been watching who has been moving 1.96M AVAX ($54.2M) and transferring to Coinbase/THORChain
0x327a81d0d128db8886d265be73c9fdda97194f30— ZachXBT (@zachxbt) June 22, 2024
Avalanche AVAX Price Action To WatchÂ
These substantial transactions are believed to be a major factor contributing to Avalanche’s recent price decline. The market’s reaction to these large sell-offs is creating downward pressure, exacerbating fears among investors as the price approaches the $23 support level.
If the selling pressure continues, Avalanche could breach this critical support, potentially leading to further declines. Market participants are closely watching these developments, assessing the impact of large holders’ actions on the broader market sentiment.
The situation underscores the influence of significant transactions on cryptocurrency markets and the importance of monitoring blockchain activity for understanding price movements. As Avalanche navigates this period of volatility, the market remains vigilant, anticipating the potential repercussions of these large-scale sales.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.