Avalanche (AVAX) Plummets 10%, Hits Yearly Low Amid Sell-Off

• AVAX drops over 10%, hitting year’s low at $24.86.
• Large AVAX transfer to exchanges triggers sell-off and price plunge.
• AVAX trading volume spikes 109% amid market reaction to sell-off.

Avalanche , a prominent cryptocurrency with a large market capitalization, has exhibited a notable decline exceeding 10% within the last 24 hours, positioning it as the most significant decliner among the principal virtual currencies. The value of AVAX has fallen from its recent peak of $27.90 down to $24.86, hitting its minimum level for the current year. This downturn represents a significant reduction of around 60% from its annual high of $60.69.

AVAX’s value has experienced a sharp decline due to a significant sell-off highlighted by ZachXBT, a recognized cryptocurrency analyst. ZachXBT has reported that a user with the wallet address “0x327…94f30” moved roughly 1.96 million AVAX tokens, worth approximately $54.2 million, to several crypto exchanges, including Coinbase, Binance, and Gate. These transfers, made possible by cross-chain bridges like THORChain, have placed considerable downward pressure on AVAX’s price, causing it to plummet by 10%.

As of this report, Avalanche is priced at $25.20 and has a market capitalization of $9.92 billion. Even with the downturn in price, there has been a notable increase in AVAX’s trading volume, which has spiked by more than 109%, amounting to $509 million. The surge in trading volume indicates a strong market reaction to the recent sell-off.

Will the Price of Avalanche (AVAX) Recover?

Should the downward trajectory continue, AVAX could potentially drop to an important support level at $23. If this level is broken, the price might decrease further to $20, a figure last observed in November 2023. A decline to this extent could lead to additional losses, with the price possibly falling to $18.43.

On the other hand, if Avalanche manages to hold its price around the current $25 mark, it could begin an upward movement toward $28. Achieving this price could set the stage for additional increases, with the potential to rise to $30. A consistent upward trend could see AVAX’s price stabilize at around $35, and it may even extend to $40 or $50 over a more extended period.