Avalanche's native cryptocurrency, AVAX, has been experiencing a significant downward trend, with the price hitting a six-month low. Over the past week, AVAX has corrected by 15%, and in the last 24 hours, it has dropped an additional 6%, trading at $24.24 with a market cap of $9.5 billion.

Technical analysis suggests that AVAX is forming a head-and-shoulder pattern, indicating a major bearish trend ahead. Analyst Crypto Patel predicts that the Avalanche price could potentially correct by an additional 50%, with the possibility of it dropping to $19 and $13. The analyst advises caution for investors looking to build long positions and recommends placing strict stop-losses on AVAX trades.

The recent price drop appears to be largely attributed to the movement of a significant amount of AVAX by a whale entity. The entity, identified as "0x32...4f30," transferred a massive 1.96 million AVAX coins, worth approximately $54.2 million, to top cryptocurrency exchanges like Binance, Coinbase, and Gate. This bearish development has further pushed Avalanche's valuation below $10 billion, causing it to fall behind other altcoins such as Tron (TRX) and Shiba Inu (SHIB).

The Avalanche network has lost nearly $14 billion in value since mid-March, reflecting the broader market sentiment and the potential for further correction in the AVAX price. Investors are advised to exercise caution and closely monitor the technical indicators before making any investment decisions regarding Avalanche.