The native token of the Avalanche blockchain, AVAX, has experienced a significant decline, falling 15% over the past week.
In the last 24 hours alone, AVAX has seen a decrease of 3.53%, bringing its price down to $24.48, and its market capitalization is now at $9.63 billion.
Furthermore, the cryptocurrency has plummeted by 36% in the past month, reaching levels unseen since December 2023.
Crypto analyst Patel highlights a head and shoulders pattern in the AVAX chart, indicating a strong bearish trend. He expects a potential downside move of 40-60%, targeting prices of $19 and $13.
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
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pic.twitter.com/FFetHS2GZc
– Crypto Patel (@CryptoPatel)
June 23, 2024
The expert advises investors to be cautious in taking long positions after this correction and recommends setting strict exit levels (stop loss) when trading with Avalanche.
Read more:
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The recent decline in the price of AVAX appears to be due to whale activity, particularly from a wallet (“0x32…4f30”) that transferred 1.96 million AVAX tokens to major exchanges such as Binance, Coinbase, and Gate.
The value of these transfers amounts to approximately $54.2 million at the time of the transaction and was facilitated through cross-chain bridges like THORChain. This bearish move pushed the market capitalization of Avalanche below $10 billion, lagging behind altcoins such as Tron (TRX) and Shiba Inu (SHIB). Since mid-March, the network has lost nearly $14 billion in value amidst recent deep corrections.
