Is it possible to recover from the massive price crash triggered by the 54 million AVAX selloff
Key Points
A massive transfer of AVAX tokens worth nearly $54.2 million to exchanges led to a 10% price drop.
AVAX has been on a downward trend, with a 36.1% decline in the last month.
The price drop is attributed to the theory that significant token movements can impact market prices.
Avax, a well-known cryptocurrency, recently experienced a sudden and substantial 10% decrease in value. This sudden drop was triggered by a significant transfer of approximately $54.2 million worth of AVAX tokens to major exchanges, causing concern among investors about the stability of the cryptocurrency.
Details of the Transfer
An investigation conducted by ZachXBT revealed that an entity with the address 0x32…4f30 transferred 1.96 million AVAX tokens to exchanges like Coinbase, Binance, and Gate, using cross-chain bridges like THORChain. This large transfer coincided with the sharp decline in AVAX’s value, supporting the notion that such movements can have a significant impact on market prices.
According to ZachXBT’s findings, AVAX has dropped by 10% in a matter of hours, likely due to the entity (0x32…4f30) transferring 1.96 million AVAX tokens (equivalent to $54.2 million) to exchanges such as Coinbase, Binance, and Gate, utilizing cross-chain bridges like THORChain for the transfers.
Price Movement Analysis
On June 22, 2024, AVAX began trading at approximately $27.80, but within ten hours, the price had fallen to around $24.99, indicating considerable market stress exacerbated by the large token transfer. While there has been a slight recovery since then, the overall trend remains uncertain.
In early June 2024, AVAX was valued at around $36.09. Since then, the cryptocurrency has witnessed a consistent downward trend, with more red candles (representing price drops) than green ones on daily charts.
Over the past month, AVAX has experienced a 36.1% decline, with a 15.0% drop in the last week alone. In the last 24 hours, AVAX decreased by 6.3%, followed by a marginal 1.2% increase in the most recent hour, highlighting the volatility in hourly trading.
Implications for Investors
The significant transfer of AVAX tokens to exchanges has had an immediate and substantial impact on its market value. This event underscores the volatile nature of the cryptocurrency market, where large transfers can strongly influence prices and investor sentiment.
Understanding these developments is crucial for investors navigating the complexities of digital assets like AVAX.
Additional Information:
– Trump Campaign Refunds Excessive Bitcoin Donation from Winklevoss Twins
– Are whales manipulating the AVAX market? Share your thoughts!
Tags: Crypto news