Avalanche (AVAX) Price Hits Six-Month Low, 50% Correction Likely Ahead
Highlights
- Avalanche price hits six months low with 15% correction over the past week.
- AVAX technical chart clearly hints at the potential of another 50% correction from here.
- The recent price drop is largely attributed to an entity ("0x32...4f30") transferring 1.96 million AVAX, to exchanges.
Avalanche’s native cryptocurrency AVAX has been facing a major downward spiral correcting 15% over the last week. In the last 24 hours, the AVAX price has corrected by an additional 6% slipping all the way to $24.24 with its market cap at $9.5 billion.
Avalanche Price Can Correct Another 50%
AVAX, the native token of the Layer-1 blockchain Avalanche has corrected by a staggering 36% in the past month hitting levels last seen six months ago back in December 2023. On the technical chart, AVAX price shows absolute weakness hinting at the potential to correct an additional 50% from the current levels.
Analysts Crypto Patel shows the formation of a head-and-shoulder pattern for Avalanche indicating a major bearish trend ahead. The Avalanche price has broken the neckline support suggesting a potential downside of more than 40-60%. As a result, the analyst predicts further correction to $19 and $13 for AVAX.
Analyst Crypto Patel advises caution to investors willing to build long position after the recent correction. He also urged traders to put strict stopp losses on Avalanche trades.
📉 AVAX/USDT Chart Analysis:$AVAX is forming a head & shoulder pattern. The NECK LINE support is broken, indicating a bearish trend.
Expecting a 40%-60% downside move. Targets: $19 & $13.
Not saying don’t open long scalps, but use strict stop loss. Trade wisely!#Crypto… pic.twitter.com/FFetHS2GZc
— Crypto Patel (@CryptoPatel) June 23, 2024
AVAX Whale Movement
The major reason behind the recent AVAX price drop seems to be the strong whale activity by an entity (“0x32…4f30”) that transferred a massive 1.96 million AVAX coins to some top crypto exchanges like Binance, Coinbase, and Gate.
Based on the current market price, the value of this transfer came around $54.2 million. Further investigation into the matter revelaed that the entity used cross-chain bridges such as THORChain for the transfers.
This bearish development has further pushed the Avalanche valuations under $10 billion thereby falling behind other altcoins such as Tron (TRX) and Shiba Inu (SHIB). Amid the strong correction in recent weeks, Avalanche has lost near $14 billion in value since mid-March.
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