AI forecasts Avalanches price for July 1 as whale transfers 54 million
Despite the prevailing negative sentiment in the cryptocurrency industry, the decentralized finance token Avalanche (AVAX) has experienced a significant drop in value in the last 24 hours. This sudden decline has raised questions about its cause, with crypto analyst ZachXBT providing insights into the matter. According to ZachXBT, a large investor, known as a whale, may be responsible for the movement. This whale transferred 1.96 million AVAX tokens, worth approximately $54.2 million, to major exchanges and through cross-chain bridges.
The transactions were recorded on Coinbase, Binance, and Gate, as well as through THORChain for bridging AVAX tokens across different blockchains. It is worth noting that significant movements by large holders can have a profound impact on market sentiment and prices, often resulting in increased volatility and speculative trading.
Given these developments, there has been a surge in interest regarding AVAX’s potential future trajectory. To address this, Finbold consulted CoinCodex, a platform that utilizes AI-driven machine learning algorithms, to provide a price prediction for AVAX at the beginning of next month. According to CoinCodex’s predictive model, AVAX is expected to trade at $33.82 on July 1, 2024, indicating a bullish trend as the predicted value reflects an almost 30% increase from the current price.
In general, large-scale transfers of cryptocurrencies to exchanges often indicate potential sell-offs, which can unsettle the market and lead to rapid declines in asset value. The significant volume of these transfers highlights the substantial impact such actions can have on the price of a cryptocurrency.
As of now, AVAX is trading at $26.12, experiencing daily losses of about 4.5% and a weekly decline of over 13%. Over the past seven days, the $25 mark has served as a key support level, with the price holding firm on June 21-22. Additionally, the $24 level is a potential psychological support if $25 fails. On the resistance side, the zone between $27.50 and $28 was observed during June 19-21, when the price struggled to stay above $28. Furthermore, $30 is another resistance point, as the price reached a peak of around $30.27 on June 16.
Disclaimer: The content of this article should not be considered as investment advice. Investing in cryptocurrencies carries risks, and your capital is at risk.