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
US CPI Heats Up Across the Board, Triggering "Inflation Spiral" Alert; October Rate Hike Odds Once Hit 50%. "New Fed News Agency": Watch Waller's Speech This Week
After the CPI was released, the market-implied rate hike probability first rose to 50% before falling back to 40%. Wall Street generally believes that whether action will be taken in October still depends on how the Federal Reserve assesses inflation trends. "The New Fed News Agency" noted that, unlike in August when price increases were concentrated in certain items, the stronger-than-expected performance of September's core CPI was more broad-based, further reinforcing the case for a December rate hike. The speech by Waller on Friday morning Beijing time is his last public statement before the Fed's blackout period ahead of this month's meeting. Economists are warning about an "inflation spiral," with real purchasing power and midterm election pressures interweaving.
The calm period in the US stock market is over! The S&P 500 ends its record of 53 consecutive trading days without a drop of over 1%. AI stock sell-off intensifies market concerns.
The S&P 500 Index fell by 1.1%, ending a streak of 53 consecutive trading days without a drop of 1% or more. This was the longest period of calm since January 2020.
Federal Reserve Beige Book: U.S. economy expands moderately but inflationary pressures intensify; AI boosts productivity curbing some corporate hiring demand
The latest Beige Book released by the Federal Reserve on Wednesday shows that overall economic activity in the United States continues to grow, but performance varies across regions. Consumer spending remains generally weak, and there has been little change in the labor market.
Overnight US Stocks | September Inflation Remains High, Major Indexes Decline, Coreweave (CRWV.US) Drops Over 15%
At the close, the Dow Jones Industrial Average fell by 47.96 points, or 0.09%, to 51,622.14 points; the S&P 500 Index dropped by 85.95 points, or 1.10%, to 7,719.50 points; and the Nasdaq Composite Index declined by 511.51 points, or 1.88%, to 26,692.87 points.
Crypto prices
More
