The native token of the Avalanche blockchain, AVAX, has experienced a significant drop, falling by 15% over the past week. In just the past 24 hours, AVAX has dropped by 3.53%, bringing its price down to $24.48 and its market value to $963 million.
Furthermore, the cryptocurrency Avalanche has seen a 36% plunge in the past month, reaching its lowest level since September 2023.
Cryptocurrency analyst Patel highlighted the “head and shoulders” pattern on the AVAX chart, indicating a strong bearish trend. He predicts a potential decline of 40-60%, with target prices at $19 and $13.
AVAX/USDT chart analysis:
$AVAX is forming a head and shoulders pattern. The neckline support has been broken, indicating a bearish trend.
Expecting a decline of 40%-60%. Targets: $19 and $13.
Not saying don’t go long, but set tight stop losses. Trade wisely!
Experts advise investors to be cautious about going long after this adjustment and recommend setting strict stop loss levels for Avalanche trading.
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The recent decline in AVAX prices appears to be due to whale activity, particularly from wallets transferring 100,000 AVAX tokens to major exchanges such as Binance, Coinbase, and Gate (“32×4…30f1.96”).
These transfers were valued at approximately $542,000 and utilized cross-chain bridges like THORChain. This bearish move caused Avalanche’s market value to drop below $1 billion, lagging behind cryptocurrencies like Tron (TRX) and Shiba Inu (SHIB). The network has lost nearly $200 million in value in the recent deep correction since mid-October.
