Massive $54.2 Million Transfer Causes AVAX to Plummet 10%
The post Massive $54.2 Million Transfer Causes AVAX to Plummet 10% appeared first on Coinpedia Fintech News
Avax experienced a sharp 10% drop within hours, likely due to a massive transfer of nearly $54.2 million worth of AVAX tokens to major exchanges. This sudden movement has had a significant impact on the cryptocurrency’s price, raising concerns among investors.
Read on to analyse the developments in AVAX.
Major Avax Transfer and Its Impact
An investigation by ZachXBT revealed that an entity (0x32….4f30) transferred 1.96 million AVAX to Coinbase, Binance, and Gate, and utilised cross-chain bridges like THORChain. This substantial transfer aligns with the sudden decline in AVAX’s value, supporting the theory that such large movements can heavily influence market prices.
AVAX Price Action Explained
On June 22, 2024, the first one-hour candle for AVAX/USD closed at around $27.80. By the tenth candle, the price had dropped to nearly $24.99, indicating a significant weakening, consistent with ZachXBT’s findings of market stress due to large transfers. Lately, there has been a slight recovery.
At the start of the month, on June 1, 2024, AVAX was priced at approximately $36.09. Throughout June, the price trend has been downward, with many large red candles and only a few small green ones on the daily chart.
Over the past 30 days, AVAX has experienced a significant decline of 36.1%. In the last 7 days, the price has dropped by 15.0%. Over the past 24-hours, AVAX has decreased by 6.3%. However, there has been a minor recovery of 1.2% in the last hour, like what’s reflected in the hourly chart of AVAX.
Notably, these metrics are consistent with the price fluctuations observed in the wake of the large transfer identified by ZachXBT.
In conclusion, the transfer of a large amount of AVAX to exchanges has had an immediate and substantial impact on its price. This event highlights the volatility in the crypto market and the influence of large transfers on market dynamics.
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