The price of Avalanche (AVAX) has plummeted by over 10% today, sparking concerns among market participants. The sudden drop can be attributed to a significant token movement, as reported by crypto detective ZachXBT. An entity, identified by the wallet address “0x327…94f30,” transferred approximately 1.96 million AVAX tokens, worth $54.2 million, to multiple exchanges.

This massive transfer included substantial deposits to Coinbase, Binance, and Gate.io, as well as cross-chain transactions via THORChain. The selloff is believed to have placed immense downward pressure on AVAX’s price, leading to its sudden 10% drop.

Large-scale transfers of cryptocurrencies to exchanges typically signal potential selloffs, which can spook the market and lead to rapid declines in the asset’s value. The significant volume involved in this transfer underscores the impact such moves can have on a cryptocurrency’s price.

The disclosure of this transfer has intensified market scrutiny and speculation. Investors are keenly watching how the market will react in the coming days, especially with such a significant amount of AVAX now potentially available for trading on major exchanges.

Despite today’s selloff, Avalanche remains a prominent player in the blockchain space, known for its high-speed and scalable platform. The network’s fundamentals and growing ecosystem may provide resilience against short-term price fluctuations.

As of writing, Avalanche price was down 10.18% to $25.12, after touching a 24-hour high of $27.90. On the other hand, AVAX’s trading volume from yesterday soared 108% to $505.33 million. The Avalanche Open Interest (OI) also soared more than 10%, indicating a bullish momentum for the crypto. Several market watchers anticipate a recovery in Avalanche price in the near term.