Avalanche’s price fell by more than 10% today, with ZachXBT stating that an entity transferred more than $54 million in AVAX tokens to several crypto exchanges.
Today, the Avalanche price has declined by over 10%, which has sparked market concern.
A popular crypto detective, ZachXBT, has shared critical insights, while market participants were avidly anticipating the potential causes of the recent AVAX price decline.
Notably, ZachXBT has reported that an entity has transferred a substantial quantity of AVAX crypto to exchanges, which could potentially affect the price of Avalanche.
Avalanche Price Slips Amid Massive Selloff
ZachXBT, a prominent figure in crypto investigations, has attributed the recent decline in AVAX’s price to significant token movements.
The wallet address “0x327…94f30” corresponds to an entity that transferred approximately 1.96 million AVAX tokens, valued at $54.2 million, to numerous crypto exchanges.
Notably, this significant transfer encompassed substantial deposits to Gate.io, Binance, and Coinbase, as well as cross-chain transactions through THORChain.
The abrupt 10% decline in AVAX’s price is believed to have been the result of the significant downward pressure that this selloff has exerted.
To provide context, the transfer of cryptocurrencies to exchanges on a large scale typically indicates the possibility of selloffs, which can cause the market to become agitated and result in rapid declines in the asset’s value.
The large volume involved in this transfer demonstrates the influence such transactions can have on a cryptocurrency’s price.
Meanwhile, the disclosure of this transfer offers a plausible explanation for the current decline in the price of AVAX, which is independent of broader market trends.
ZachXBT’s report sheds light on the entity’s actions, implying that the rapid movement of so much AVAX contributed to the token’s drop.
Will Price Recover?
The disclosure of the substantial AVAX transfer has provoked an increase in market speculation and scrutiny.
With the prospective availability of a substantial quantity of AVAX for trading on major exchanges, investors are closely monitoring the market’s response in the coming days.
Notably, this situation reflects the volatility that is inherent in the cryptocurrency market, as significant transactions by a single entity can have an outsized impact on price dynamics.
Also, the price decline of Avalanche serves as a stark reminder of the influence that substantial transactions can have on the market.
However, Avalanche continues to be a significant participant in the blockchain industry, known for its scalable and high-speed platform, despite the recent selloff.
The network’s fundamentals and expanding ecosystem may offer resilience in the face of short-term price fluctuations.
Meanwhile, Avalanche price fell 10.18% to $25.12 as of the time of writing, following a 24-hour high of $27.90.
Conversely, the trading volume of AVAX increased by 108% to $505.33 million from yesterday.
In addition, the Avalanche Open Interest (OI) increased by over 10%, as per CoinGlass data, suggesting that the crypto is experiencing an optimistic momentum.
Given this, several market analysts anticipate that the price of Avalanche will undergo a recovery in the near future.