AVAX Slips 10% Amid Massive Selloff By An Entity

The Avalanche price has slipped more than 10% today, prompting market concerns. While the market participants were eagerly waiting for the potential reasons that have triggered the recent AVAX price slump, a popular crypto detective ZachXBT has shared crucial insights.

Notably, according to ZachXBT, an entity has dumped a massive amount of AVAX crypto to exchanges, potentially impacting the Avalanche price.

Avalanche Price Slips Amid Massive Selloff

The recent dip in AVAX’s price can be traced to substantial token movements, as reported by ZachXBT, a well-known figure in crypto investigations. An entity, identified by the wallet address “0x327…94f30,” transferred approximately 1.96 million AVAX tokens, worth $54.2 million, to multiple crypto exchanges.

Notably, this massive transfer included significant deposits to Coinbase, Binance, and Gate.io, as well as cross-chain transactions via THORChain. This selloff is believed to have placed immense downward pressure on AVAX’s price, leading to its sudden 10% drop.

For context, large-scale transfers of cryptocurrencies to exchanges typically signal potential selloffs, which can spook the market and lead to rapid declines in the asset’s value. The significant volume involved in this transfer underscores the impact such moves can have on a cryptocurrency’s price.

Meanwhile, the revelation of this transfer provides a plausible explanation for today’s AVAX price drop, beyond broader market trends. ZachXBT’s report sheds light on the entity’s actions, suggesting that the rapid movement of such a large quantity of AVAX likely contributed to the token’s decline.

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Will Price Recover?

The disclosure of the massive AVAX transfer has intensified market scrutiny and speculation. Investors are keenly watching how the market will react in the coming days, especially with such a significant amount of AVAX now potentially available for trading on major exchanges.

Notably, this situation reflects the volatility inherent in the cryptocurrency market, where large transactions by single entities can have outsized effects on price dynamics. Besides, Avalanche’s price dip is a stark reminder of the impact that large transactions can have on the market.

However, despite today’s selloff, Avalanche remains a prominent player in the blockchain space, known for its high-speed and scalable platform. The network’s fundamentals and growing ecosystem may provide resilience against short-term price fluctuations.

Meanwhile, as of writing, Avalanche price was down 10.18% to $25.12, after touching a 24-hour high of $27.90. On the other hand, AVAX’s trading volume from yesterday soared 108% to $505.33 million.

In addition, the Avalanche Open Interest (OI) also soared more than 10%, as per CoinGlass data, which indicates a bullish momentum for the crypto. Considering that, several market watchers anticipate a recovery in Avalanche price in the near term.

Also Read: Bitcoin Bull Run May Restart In September 2024, Here’s Why

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Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.