Will Avalanche’s First Token Unlock In 3 Months Trigger Price Drop to $20?
Avalanche faces potential price drop due to a $42 million token unlock; price may dip to $20 if supply overwhelms demand.
Avalanche (AVAX) has seen a notable surge in price recently, benefiting from broader market bullish cues. However, the altcoin now faces a potential bearish event that could impact its price dynamics in the coming days.
The upcoming token unlock could increase the circulating supply, potentially causing price fluctuations.
Avalanche Awaits Token Unlock
In the next 24 hours, Avalanche will experience its first token unlock in nearly three months, releasing 1.67 million AVAX tokens into the market. This unlock is considered a bearish event because the sudden increase in supply could outpace demand, putting downward pressure on the price.
This $42.85 million unlock could affect the price of AVAX by overwhelming the market with additional supply. As a result, the altcoin could face difficulty maintaining its recent upward momentum. The timing of this event, following a period of price gains, suggests that AVAX may experience heightened volatility.
For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter.
Avalanche Token Unlock. Source:
Avalanche
Despite the concerns over the token unlock, technical indicators for AVAX show potential for continued bullish momentum. The Relative Strength Index (RSI) has recently shown an uptick, sitting comfortably above the neutral mark of 50.0.
The RSI’s position in the bullish zone signals that AVAX has the capacity to resist downward pressure. As a result, it could continue to push upward if market conditions remain favorable.
Avalanche RSI. Source:
TradingView
AVAX Price Pushes Further
At the time of writing, AVAX is trading at $25.6, having risen by 12.7% in the last 24 hours. The altcoin seems to be targeting the $26.1 resistance, which has kept AVAX from advancing for over a month. Breaking this resistance is crucial for the continuation of the uptrend.
However, the altcoin may struggle to breach this key resistance and could continue consolidating under $26.1. The supply pressure from the upcoming token unlock could limit the price action, with AVAX likely holding above $24.9. If the token unlock’s impact is mild, the price may stabilize at this level.
Avalanche Price Analysis. Source:
TradingView
On the other hand, if the unlock causes a stronger bearish reaction, AVAX could fall below the $24.9 support level. A further decline could lead to a drop to $23.9 or lower, potentially reaching $22.4. Such a drop would invalidate the neutral thesis, signaling a shift in sentiment and market correction for AVAX.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
AI trading cools down and storage chip competition intensifies, Korean stocks plunge over 5%, marking a second consecutive day of sharp decline; SK Hynix drops nearly 8%
On Tuesday, the Korea Composite Stock Index (KOSPI) dropped by as much as 5.1%, triggering the Sidecar circuit breaker mechanism on the exchange and suspending programmatic sell orders for five minutes. Both Samsung Electronics and SK Hynix fell more than 6%, marking five consecutive days of decline. Japan's SoftBank Group plunged over 8%, while AI industry-related stocks such as Tokyo Electron and Advantest also dropped by more than 5%.
Wall Street giants' financial reports tonight: With stock prices trapped in technical correction, even a 20% profit increase can hardly ease triple anxiety
Shares of major US banks hovered in a technical correction zone on Tuesday as the earnings season kicked off, with long-term borrowing costs rising to their highest levels in decades. This has heightened market attention on bank executives’ assessments of US consumer health and credit prospects.
UBS Earnings Season Preview: Strong Momentum from AI Spending, Favoring Lam Research (LRCX.US) and Texas Instruments (TXN.US), Remaining Cautious on Western Digital (WDC.US)
Lam Research (LRCX.US), Texas Instruments (TXN.US), and Western Digital (WDC.US) are set to release their quarterly earnings reports in the coming days. UBS believes that, with continued high spending on artificial intelligence, all three companies are likely to benefit from this trend.
Deutsche Bank (DB.US) upgrades AST (ASTS.US) rating: Has the SpaceX (SPCX.US) spectrum acquisition triggered an unjust sell-off?
Deutsche Bank has upgraded AST SpaceMobile to a "Buy" rating with a target price of $93. Despite stock price volatility triggered by SpaceX's spectrum acquisition, analysts believe that the cooperation potential with T-Mobile and government orders constitute core support. The recent short-term pullback may present a good opportunity to build positions.
Crypto prices
More
