Is Avalanche Heading for a Crash? Massive $54M Transfer Puts Crucial Support Level to the Test

Avalanche (AVAX) has recently experienced a notable 5% drop within the last 24 hours, further extending to a 9.1% decrease over the past week. As it stands, the digital currency’s price hovers around $25.74, sparking widespread discussions about the underlying causes of this downturn.

According to ZachXBT’s investigation, AVAX has fallen 10% in the past few hours, most likely because an entity (0x32…4f30) began to transfer 1.96 million AVAX (worth $54.2 million) to Coinbase, Binance, Gate, and used cross-chain bridges such as THORChain for transfers.…

— Wu Blockchain (@WuBlockchain) June 22, 2024

The current market trajectory suggests that Avalanche is nearing a significant support level at $23.34. This critical juncture is closely monitored by investors and analysts alike, as breaking below this threshold could signal further declines. The urgency of this situation is heightened by recent investigative reports that have begun to shed light on possible reasons behind the sudden price movements.

Investigative Insights into AVAX’s Price Movements

Renowned crypto investigator ZachXBT, through a detailed analysis disseminated by Wu Blockchain, has pinpointed the activities of a specific entity identified by the wallet address “0x32…4f30.” According to the publication, this entity is responsible for moving nearly 1.96 million AVAX (~$54.2M) to leading exchanges Coinbase, Binance, and Gate. 

This heavy transfer activity is largely conducted through cross-chain bridges, such as THORChain, placing downward pressure on Avalanche. The consequences of movements of this scale across exchanges are massive. They tend to fuel the bears of the market, driving prices lower toward a major support level. 

Given the degree to which Avalanche is off it’s all-time-high and the significance of this particular level, the reaction over the next few days will be important. As a result, market watchers and participants are waiting to see whether the downward pressure will subside or if the breach of key support could open the floodgates to further losses.