The recent transfer of 5,500 AVAX from a US government wallet to a new address attracted attention, triggering a price correction following a recent surge.
Government Action and Its Significance
Details from the Avalanche blockchain show that 298.9369 AVAX, approximately $5.5K, was moved from a wallet labeled 'U.S. Government: Brian Krewson Confiscated Funds' to another address. The transaction cost was only 0.00105 AVAX, with the gas price remaining at 50 GWEI, the standard rate for current network interactions.
Market Reaction to the Transaction
Following the transaction, the AVAX market displayed a slight decline in value. AVAX has been down by 0.27% in the last 24 hours and is trading at $18.60. This dip is relatively insignificant considering the earlier increase. The technical chart shows AVAX's position, highlighting trends and potential outlooks.
AVAX Short-Term Rally Potential
Other analyst charts show an inverse head-and-shoulders pattern. This pattern is usually considered bullish and interpreted as a signal of a possible reversal of the previous downward trend. Analysts suggest a potential 25–30% rally in AVAX’s price from current levels if it breaks through the $19 level.
The movement of AVAX by the government wallet underscores interest in Avalanche and creates certain conditions for price volatility. Analysts continue monitoring developments and possible growth prospects.
