- Avalanche unlocks 1.33% of AVAX’s max supply.
Analysis say the bottom might be in.
As a seasoned analyst with over two decades of experience in the crypto market, I have witnessed countless token unlocks and their impact on prices. The recent release of 9.54 million AVAX tokens by Avalanche is no exception. With this being the last significant unlock, it’s natural to wonder whether this influx will drive up or stabilize the price. Historically, similar events have led to notable price movements, so it’s essential to keep a close eye on AVAX’s trajectory.
Among various altcoins, Solana (SOL), Worldcoin (WLD), and Avalanche (AVAX) have been at the forefront of token unlocks. Notably, Avalanche has released approximately 9.54 million AVAX tokens, accounting for about 1.33% of its total maximum supply.
This AVAX occurrence signifies the last significant release of tokens, distributed to the Team, Foundation, Strategic Collaborators, and Airdrop beneficiaries.
With the recent surge of AVAX, there’s a lot of discussion about whether this increase will cause Avalanche’s price to rise or maintain its current level.
In the future, Avalanche is planning to transition to a system where only the foundation receives token unlocks in smaller amounts, amounting to 1.6 million AVAX every three months, up until July 20, 2030.
Adjusting the release schedule for unlocks serves as a tactical decision aimed at controlling supply and lessening the impact of selling activity. This could help maintain stability in AVAX‘s price even with an ongoing rise in circulating tokens.
Keeping a close eye on this upcoming release is crucial as it’s expected to cause substantial fluctuations in price due to its historical precedents – similar token releases have typically triggered noticeable changes.
Already, AVAX is showing signs of moving higher as the overall crypto market trends upward.
Is AVAX bottom in?
Looking at it from a technical standpoint, it seems like Avalanche (AVAX) may have hit its lowest point. The price movements indicate a possible rise in the future. On the 4-hour AVAX/USDT chart, the price has recovered the support level ranging between $22.84 and $21.06.
If the price moves slightly higher than its current level by the end of the week, it suggests a bullish trend, while dropping beneath the current range might lead to additional selling. According to the Elliott Wave theory, the future looks promising for AVAX.
Falling wedge pattern
Furthermore, it appears that Avalanche’s 3-day price action shows signs of a “falling wedge” formation, which typically suggests a positive outlook. The cryptocurrency has rebounded from the lower trendline, leading us to believe that a breakout from this pattern is likely to occur soon.
If this breakout happens, it’s possible that Avalanche (AVAX) might experience a significant increase comparable to the approximately 200% rise observed during November and December of 2023.
Releasing AVAX tokens gradually might bolster the possibility of a price rise during the approaching “altcoin season.”
The weekly confirms an uptrend
The weekly chart also confirms an uptrend for Avalanche. AVAX has not only broken out of its base but has also completed a textbook retest of the resistance that has now turned into support.
The AVAX support flip strongly confirms the uptrend, aligning with the general positive sentiment in the broader crypto market and favorable conditions for risk assets.
As I observe the positive weekly candle closings, I’m optimistic about the potential continuation of the bull trend for Avalanche (AVAX) throughout the fourth quarter of 2024.
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Mentions and engagement
Engaging in social conversations, particularly those involving Avalanche [AVAX] on social media platforms like Crypto Twitter, is becoming more frequent and could play a significant role in forecasting price fluctuations.
Paying more attention to AVAX tends to coincide with price rises, hinting that its value could keep going up as it becomes more recognized and popular in the cryptocurrency world.
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2024-08-27 09:12