Avalanche (AVAX) is gearing up for a significant unlock event that has sparked speculation among investors. The past month has witnessed a prevailing bearish sentiment, with volume indicators suggesting that the buying pressure might not be robust enough to counter the crypto’s prevailing losses.
Despite this recent decline, all eyes are on the impending unlock event, pondering the potential impact it might have on AVAX’s price trajectory.
Scheduled to occur later this week, the unlock event is based on data sourced from Token Unlocks. This data indicates that an impressive 9.54 million AVAX tokens, valued at over $100 million, are set to be unlocked on August 26. Such an event has historically brought about substantial market movements, prompting analysts to closely scrutinize the upcoming developments.
Source: Token Unlocks
AVAX Price Impact: A Waiting Game
However, experts caution against expecting an immediate or substantial price reaction to this unlocking event. Previous instances of similar events have been accompanied by downtrends in AVAX’s price. In the wake of such trends, there is a possibility that AVAX might breach the psychological support level at $10.
A closer examination of the current market data reveals that AVAX is currently priced at $10.24, exhibiting a slight decline of 0.7% according to CoinGecko. Over the span of the past week, the cryptocurrency has undergone a notable seven-day slump of 12.4%, further accentuating the challenges it faces.
AVAX price action today. Source: Coingecko
A deeper analysis of AVAX’s price trajectory unveils that the downtrend in its valuation began in July, with the most substantial drop occurring during the course of August. This suggests a cumulative effect of market forces that have impacted the coin’s value.
The looming unlock event introduces an additional layer of complexity to the current market landscape, leaving investors to ponder the potential ramifications.
AVAX market cap currently at $3.5 billion. Chart: TradingView.com
A Future Uncertain
As market participants await the unlock event, the crypto community is divided in its outlook. Some view it as a potential catalyst that could amplify the ongoing bearish trends, while others hold onto the hope that the event might signal a turning point for AVAX’s fortunes.
Such uncertainty is emblematic of the broader volatility that characterizes the cryptocurrency realm, where events can trigger…
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