Avalanche Price Slips Amid Massive Selloff
The recent dip in AVAX’s price can be traced to substantial token movements, as reported by ZachXBT, a well-known figure in crypto investigations. An entity, identified by the wallet address “0x327…94f30,” transferred approximately 1.96 million AVAX tokens, worth $54.2 million, to multiple crypto exchanges.
Notably, this massive transfer included significant deposits to Coinbase, Binance, and Gate.io, as well as cross-chain transactions via THORChain. This selloff is believed to have placed immense downward pressure on AVAX’s price, leading to its sudden 10% drop.
For context, large-scale transfers of cryptocurrencies to exchanges typically signal potential selloffs, which can spook the market and lead to rapid declines in the asset’s value. The significant volume involved in this transfer underscores the impact such moves can have on a cryptocurrency’s price.
Meanwhile, the revelation of this transfer provides a plausible explanation for today’s AVAX price drop, beyond broader market trends. ZachXBT’s report sheds light on the entity’s actions, suggesting that the rapid movement of such a large quantity of AVAX likely contributed to the token’s decline.