Avalanche’s native cryptocurrency, AVAX, has experienced a sharp decline, correcting 15% during the past week. With a market valuation of $9.5 billion, AVAX’s price has dropped by an additional 6% in the past day to $24.24.
Avalanche Prices Are Reversible An additional 50%
The Layer-1 blockchain’s native token, AVAX, or Avalanche, has dropped by an astounding 36% in the previous month, reaching levels last seen in December 2023, six months ago. The price of AVAX exhibits utter weakness on the technical chart, suggesting that it may correct an additional 50% from the current levels.
According to analysts Crypto Patel, the creation of a head-and-shoulder pattern for Avalanche suggests a significant bearish trend is imminent. The price of Avalanche has broken below the neckline support, indicating a possible decline of above 40–60%. Consequently, the analyst projects that AVAX will continue to decline between $19 and $13.
After the correction, analyst Crypto Patel cautions investors wishing to establish long positions. Furthermore, he advised traders to set stop losses on avalanche trades strictly.
📉 AVAX/USDT Chart Analysis:$AVAX is forming a head & shoulder pattern. The NECK LINE support is broken, indicating a bearish trend.
Expecting a 40%-60% downside move. Targets: $19 & $13.
Not saying don’t open long scalps, but use strict stop loss. Trade wisely!#Crypto… pic.twitter.com/FFetHS2GZc
— Crypto Patel (@CryptoPatel) June 23, 2024
AVAX Whale Motion
The significant whale activity by an individual (“0x32…4f30”) that moved a staggering 1.96 million AVAX tokens to several well-known cryptocurrency exchanges like Binance, Coinbase, and Gate appears to be the leading cause of the most recent AVAX price decline.
This transfer was valued at around $54.2 million at the current market price. Subsequent examination revealed that the entity carried out the transfers using cross-chain bridges like THORChain.
As a result of this negative trend, Avalanche’s valuation has dropped below $10 billion, lagging behind other cryptocurrencies like Tron (TRX) and Shiba Inu (SHIB). Since the middle of March, its value has dropped by around $14 billion due to the current sharp decline.
