AVAX, the native token of the Avalanche blockchain, has hit a wall in its recent relief bounce. After a sharp rally from $14 on March 11 to $19 on March 12, a sudden move from US government coincides with price correcting to $18 on March 13.
The 35% relief bounce follows a prior bearish trend where AVAX fell from $21-$22 between March 7 and March 10.
Adding to the market dynamics the US government has moved around 230 AVAX tokens to a new wallet, sparking speculation about potential selling pressure or strategic fund management.
In a recent post on X, Arkham Intelligence disclosed this transfer where AVAX is valued at about $5,500 AVAX. The transfer is made after AVAX experienced a sharp rally, with Arkham’s alert garnering attention during recent price movements.
In spite of the retreat, AVAX is in high spirits, with a market capitalization of $7.52 billion and 24-hour trading volume at $340.04 million, shooting 28.66%. Currently, it stands at position 16 on CoinMarketCap.
In the past, market sentiment has been impacted by the U.S. government’s cryptocurrency transactions, typically with conjecture about potential impacts on asset prices. Even if the 230 AVAX token transaction is very minor, it has the potential to spark discussion about market dynamics and government intervention in the cryptocurrency space.
It’s also worth noting that VanEck, a prominent investment firm, recently filed for an Avalanche ETF in the U.S.
Also Read: Can Avalanche (AVAX) Hit $200 After Recent Surge?
