Prices Are Falling in AVAX Coin and O 2 Altcoins: Here’s Why!

The cryptocurrency market has been experiencing significant fluctuation recently, and this has also affected the well-known coins Avalanche (AVAX coin), Chainlink and Dogwifhat (WIF). The prices of all three coins have decreased significantly in recent days. Let’s look at the reasons behind these declines.

A price drop was seen for AVAX coin

Avalanche price lost more than 10% today. The reason for this sudden decline is seen as a large-scale sell-off that worries market participants. Crypto researcher ZachXBT shared a valuable clue behind this decline. According to ZachXBT’s report, there was a major sale that affected the price of Avalanche. 1.96 million AVAX tokens worth approximately $54.2 million were transferred from the account address “0x327…94f30” to various cryptocurrency exchanges. These transfers include significant transfers to Coinbase, Binance and Gate.io, as well as inter-chain transfers via THORChain.

Large token transfers are often considered a sign of potential sales. As can be seen in this case, these transfers affected the Avalanche price downwards, causing a sudden decline. With the emergence of this large-scale sale, speculations increased in the market. Investors are closely watching how the market will react in the coming days. In particular, the fact that such a large supply of AVAX is currently trading on exchanges could potentially push prices down.

The well-known chest coin named Dogwifhat also lost momentum

Solana-based chest coin Dogwifhat (WIF) has also experienced a significant price drop in recent days. There are three main factors behind this decline:

• Sale of Whales and Declining Investor Interest: One of the most important events affecting the WIF price is large-scale sales by whales. According to Solscan data, on June 20, a whale sold 5.97 million WIF tokens worth $12.1 million to Binance. This move significantly accelerated the downward trend that had already begun. The same whale sold another 6.84 million WIF tokens to Binance, worth approximately $11.3 million, today.
• Great Long Purges: Another critical factor contributing to the decline in Dogwifhat price is long liquidations. Long positions worth $1.66 million were liquidated in the last 24 hours. This liquidation accelerated the price decline by forcing investors to sell their assets at lower prices to cover their leveraged positions.
• Loss of $2 Support Level: The loss of the $2 critical support level was a significant blow to WIF price stability. Dogwifhat recently broke this support by falling from $ 2.6 to $ 1.75. This decline led to a pessimistic outlook, with technical indicators pointing to further declines.

Supply shock in Chainlink: $300 million unlocking

On June 21, Chainlink (LINK) released 21 million unlocked tokens worth close to $300 million. This creates significant supply inflation and could lead to a sell-off, with potential economic impacts on the price. According to SpotOnChain’s report, the group sent 18.75 million of the released amount to a deposit address on Binance. This indicates that almost 88% of the inflated supply is intended to be sold immediately.

Additionally, the contract sent 2.25 million LINK to multisig wallet 0xD50f. This wallet currently holds over 6 million LINK and still holds 391.5 million LINK for future unlocks. This unlocked supply address poses a $5.4 billion threat. Chainlink has been unlocking and selling significant amounts of tokens since August 2022. In the last two years, a total of 127 million LINK was unlocked and 107.7 million LINK was deposited to Binance.