AI predicts Avalanches price for July 1 as whale shifts 54 million
In spite of the prevailing negative sentiment in the realm of digital currencies, the decentralized finance (DeFi) token known as Avalanche (AVAX) has witnessed a significant decline in value within the last 24 hours. This sudden price movement has sparked speculation about its cause. At one juncture, the token experienced a drastic 10% drop, prompting well-known cryptocurrency analyst ZachXBT to offer insights on the situation.
According to information shared by ZachXBT, a large investor, or “whale,” may be behind the price movement. This individual transferred a staggering 1.96 million AVAX tokens, valued at approximately $54.2 million, to various major exchanges and cross-chain bridges.
The transactions were conducted on platforms such as Coinbase, Binance, Gate, and THORChain for the purpose of transferring a portion of the AVAX tokens across different blockchains.
It is worth noting that such significant movements by major holders can have a profound impact on market sentiment and prices, often leading to increased volatility and speculative trading.
Interest in predicting AVAX’s future trajectory has intensified in light of these developments. Finbold consulted CoinCodex, a platform that utilizes AI-driven machine learning algorithms, to provide a price forecast for AVAX at the beginning of the next month.
According to CoinCodex’s predictive model, AVAX is anticipated to reach $33.82 on July 1, 2024, indicating a bullish trend as this projected value represents an almost 30% increase from the current price.
In general, large transfers of cryptocurrencies to exchanges are typically seen as potential precursors to selloffs, causing market unrest and leading to rapid declines in asset value. The substantial volume of these transfers underscores the significant impact such actions can have on the price of a cryptocurrency.
As of the current moment, AVAX is trading at $26.12, reflecting a daily loss of around 4.5% and a weekly decline of over 13%. Over the past seven days, the $25 mark has proven to be a crucial support level, while the $24 level remains a possible psychological support if $25 falters.
The resistance zone between $27.50 and $28 was evident from June 19-21, with the price struggling to maintain levels above $28. Furthermore, $30 represents another resistance point, as the price reached a peak of around $30.27 on June 16.
Please note: The information provided in this article should not be construed as investment advice. Investing in cryptocurrencies carries inherent risks and your capital is at stake.
