The Avalanche price is developing a head-and-shoulder pattern on the technical chart, implying another 50% correction. Over the weekend, AVAX whale shifted large amounts of coins.
Avalanche’s native cryptocurrency, AVAX, has been on a significant downward spiral, falling 15% in the last week.
The AVAX price has corrected by an additional 6% in the past 24 hours, resulting in a market cap of $9.5 billion and a price of $24.24.
Avalanche Price Can Correct Another 50%
The native token of the Layer-1 blockchain Avalanche, AVAX, has experienced a remarkable 36% correction in the past month, reaching levels last observed in December 2023, six months ago.
The technical chart indicates that the price of AVAX is exhibiting absolute weakness, which suggests that it has the potential to decline by an additional 50% from its current position.
Analyst Crypto Patel shows the formation of a head-and-shoulder pattern for Avalanche indicating a major bearish trend ahead.
The Avalanche price has breached the neckline support, indicating a potential decline of over 40% to 60%.
Consequently, the analyst predicts that AVAX will experience further corrections to $19 and $13.
Analyst Crypto Patel cautions investors who are considering establishing a long position after the recent correction.
Also, he encouraged traders to establish rigorous limit losses on Avalanche trades.
AVAX Whale Movement
The major cause of the recent AVAX price dip appears to be the significant whale activity of an entity (“0x32…4f30”), which transferred a substantial 1.96 million AVAX coins to some top crypto exchanges such as Gate, Coinbase, and Binance.
Based on current market prices, the transfer was worth around $54.2 million.
Further investigation into the matter revealed that the entity employed cross-chain bridges, including THORChain, to facilitate the transfers.
This bearish development has further reduced the Avalanche’s valuations to below $10 billion, resulting in a decline in relative value to other altcoins, including Tron (TRX) and Shiba Inu (SHIB).
Avalanche has experienced a nearly $14 billion decline in value since mid-March, amid the significant correction it has experienced in recent weeks.