Avax, a popular cryptocurrency, experienced a sudden and significant 10% drop recently. This was triggered by a massive transfer of approximately $54.2 million worth of AVAX tokens to major exchanges. The sudden movement has left investors concerned about the cryptocurrency’s stability.
Here’s more on this.
The Transfer: What Happened?
An investigation by ZachXBT revealed that an entity (0x32….4f30) transferred 1.96 million AVAX to Coinbase, Binance, and Gate, and utilised cross-chain bridges like THORChain. This substantial transfer aligns with the sudden decline in AVAX’s value, supporting the theory that such large movements can heavily influence market prices.
AVAX Price Action Explained
On June 22, 2024, AVAX started trading at around $27.80 in the first hour. However, by the tenth hour, the price had dropped to nearly $24.99, reflecting significant market stress exacerbated by the large token transfer. There has been a slight recovery since, but the overall trend remains uncertain.
At the beginning of June 2024, AVAX was valued at approximately $36.09. Since then, the cryptocurrency has seen a persistent downward trend, with more red candles (indicating price drops) than green ones on daily charts.
Over the past month, AVAX has declined by 36.1%, with a 15.0% drop in the last week alone. In the last 24 hours, AVAX decreased by 6.3%, followed by a slight 1.2% increase in the most recent hour, reflecting the volatility seen in hourly trading.
What It Means for Investors
The recent large transfer of AVAX tokens to exchanges has had an immediate and significant impact on its market value. This event underscores the volatile nature of the cryptocurrency market, where substantial transfers can strongly influence prices and investor sentiment.
Understanding these developments is crucial for investors navigating the complexities of digital assets like AVAX.
Also Read : Trump Campaign Refunds Excessive Bitcoin Donation from Winklevoss Twins
Are whales manipulating the AVAX market? Weigh in with your opinion!
