Avalanche is on track to reach its crucial support level of $23.34 if its market performance continues on a decline, as it has over the last 24 hours. According to Wu Blockchain, an investigation by ZachXBT has revealed what might be fueling the rapid drop in the price of Avalanche.
Major transfers impacting Avalanche
At the time of writing, Avalanche is changing hands for $25.34, down by 8.34% in the past 24 hours.
card
The sharp decline has been attributed to several factors. Primarily, the reason for this drop appears to be the actions of an entity ("0x32...4f30") that started transferring 1.96 million AVAX to exchanges like Coinbase, Binance and Gate.
The value of the transferred asset comes in at $54.2 million based on the current market price. An investigation revealed that the entity utilized cross-chain bridges such as THORChain for the transfers. The movement has further aggravated bearish market sentiment surrounding AVAX.
This transfer has triggered a notable decline toward the critical support level of $23.34, as it is barely $2 away from breaching it. Analysts believe that if that happens, there will be more downsides for Avalanche to worry about.
Historical performance and Avalanche's recent trends
This continued bearish movement is upsetting to Avalanche given that it was one of the top gainers in the first quarter of the year. Notably, the blockchain platform is undergoing a steady decline, as data reveal that from May 23, when the price was $38.31, it has not been able to flip its bullish trend.
card
Interestingly, per the May market Rankings, Avalanche nudged Shiba Inu, the dog-themed coin, out of the top 10 as it climbed up by more than 18% in value. Market experts say the current decline in AVAX value attests to the volatility of the market, in this case, the massive transfer initiated by the entity (0x32...4f30).
Investors are, however, advised to observe the key support level and make decisions based on price movement around it.