Avalanche price threat – what to expect?

AVAX, the native token of the Avalanche blockchain, has seen a major decline, dropping 15% in the past week.

In the last 24 hours alone, AVAX reflected a decline of 3.53%, bringing its price down to $24.48 and its market capitalization to $9.63 billion.

Additionally, the cryptocurrency of Avalanche , tumbled 36% in the past month, hitting levels not seen since December 2023.

Crypto analyst Patel highlighted a "head and shoulders" pattern on the AVAX chart, suggesting a strong bearish trend. He expects a potential decline of 40-60%, targeting prices of $19 and $13.

The expert advises investors to be cautious in taking long positions after this correction and recommends setting strict stop loss levels for Avalanche trades.

The recent drop in AVAX price 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 amounted to approximately $54.2 million at the time of the transaction and cross-chain bridges such as THORChain were used. The bearish move pushed Avalanche's market cap below $10 billion, falling behind altcoins such as Tron (TRX) и Shiba Inu (SHIB) . Since mid-March, the network has lost nearly $14 billion in value amid recent deep corrections.