Despite the overall bearish sentiment in the crypto sector, the decentralized finance (DeFi) token Avalanche (AVAX) has experienced a sharp drop in the last 24 hours.
Notably, the price movement has raised questions about its trigger. At one point, the token saw a dramatic 10% drop, with popular crypto analyst ZachXBT sharing insights regarding the decline.
According to data shared by ZachXBT, a whale may be responsible for the movement, having transferred 1.96 million AVAX tokens, valued at approximately $54.2 million, to several significant exchanges and via cross-chain bridges.
The transactions were recorded at Coinbase, Binance, and Gate and through THORChain for bridging a portion of the AVAX tokens across different blockchains.
AVAX onchain activity. Source: ZachXBT
Notably, such significant movements by large holders can profoundly impact market sentiment and prices, often leading to increased volatility and speculative trading.
AVAX AI price prediction
In light of these developments, interest in understanding AVAX’s potential future trajectory has surged. To this end, Finbold consulted CoinCodex, a platform utilizing AI-driven machine learning algorithms, to offer a price prediction for AVAX at the beginning of next month.
According to CoinCodex’s predictive model, AVAX is expected to trade at $33.82 on July 1, 2024, a bullish indicator since the predicted value reflects an increase of almost 30% from the current price.
AVAX AI price prediction chart. Source: CoinCodex
Overall, large-scale transfers of cryptocurrencies to exchanges often signal potential selloffs, unsettling the market and resulting in rapid asset value declines. The substantial volume of these transfers highlights the significant impact such actions can have on a cryptocurrency’s price.
AVAX price analysis
As of press time, AVAX was trading at $26.12, reflecting daily losses of about 4.5% and showing a weekly decline of over 13%.
AVAX seven-day price chart. Source: Finbold
For AVAX over the past seven days, the $25 mark has been a key support level held firm on June 21-22. Additionally, the $24 level remains as potential psychological support if $25 fails.
The resistance zone between $27.50 and $28 was marked during June 19-21, when the price struggled to sustain above $28. Additionally, $30 is another resistance point, as the price peaked around $30.27 on June 16.
