Avalanche (AVAX) is facing a significant downturn, with its price plummeting by 8.34% over the past 24 hours, bringing its current value to $25.34. Market analysts are closely monitoring the situation as the cryptocurrency edges toward a crucial support level of $23.34. If this downward trend continues, Avalanche could face even more severe declines.

A recent investigation by ZachXBT, reported by Wu Blockchain, has shed light on the factors driving this sharp decline. The primary culprit appears to be the actions of a mysterious entity identified by the address "0x32...4f30". This entity has been transferring a substantial amount of AVAX—approximately 1.96 million tokens—into major exchanges like Coinbase, Binance, and Gate. The total value of these transfers is around $54.2 million, calculated at the current market price.

The investigation revealed that the entity used cross-chain bridges, such as THORChain, to facilitate these significant transactions. This activity has intensified the bearish sentiment surrounding AVAX, pushing its price perilously close to the $23.34 support level. Market experts warn that breaching this level could lead to further declines, exacerbating the current downward trend.

Historically, Avalanche has shown robust performance, particularly in the first quarter of the year, when it was among the top gainers. On May 23, AVAX was trading at $38.31, but since then, it has struggled to maintain a bullish trend. The recent declines mark a stark contrast to its earlier achievements, including surpassing Shiba Inu in market rankings with an 18% increase in value.

The current market volatility, exemplified by the massive transfer initiated by the entity "0x32...4f30", underscores the unpredictable nature of cryptocurrency markets. Investors are advised to closely monitor the key support level of $23.34 and make informed decisions based on price movements around this critical threshold. The ongoing investigation and market responses will be crucial in determining the future trajectory of Avalanche.