Avalanche (AVAX) Makes Headlines with Recent Token Unlock Event, Releasing 9.54 Million AVAX Tokens

Avalanche (AVAX) is making headlines with its recent token unlock event, releasing 9.54 million AVAX tokens—representing 1.33% of its maximum supply.

Avalanche (AVAX) price is making headlines again as a recent token unlock event has seen 9.54 million AVAX tokens—representing 1.33% of its maximum supply—being released. This marks the final major unlock for the token, sparking questions about its potential impact on AVAX’s price and the market dynamics. As the cryptocurrency market trends upward, the timing and effects of this unlock are crucial for investors and traders to understand.

Details of the Token Unlock

The recent release of 9.54 million AVAX tokens is a significant event in the cryptocurrency space. These tokens have been allocated to various stakeholders, including the team, foundation, strategic partners, and airdrop recipients. Following this major unlock, Avalanche will transition to a more controlled release schedule, distributing 1.6 million AVAX tokens quarterly until July 2030. This approach aims to manage supply and mitigate potential selling pressure, which could influence AVAX’s price stability.

Potential Impact on AVAX Price

Historically, large token unlocks can lead to notable price movements. With 1.33% of AVAX’s total supply entering circulation, there is concern that this influx might either inflate or stabilize the token’s price. The immediate market reaction will be closely watched to determine whether this release leads to increased volatility or a more stabilized price environment.

Current Market Trends and AVAX Price Action

Despite the token unlock, AVAX is currently showing signs of upward movement. The overall cryptocurrency market’s positive trend has contributed to this bullish sentiment. On the technical front, AVAX appears to have found its price bottom, with recent price action indicating potential for further gains.

The AVAX/USDT 4-hour chart reveals that the price has reclaimed support between $22.84 and $21.06. A sustained close above this range by the end of the week could signal a bullish trend. Conversely, a drop below this support band may trigger additional selling pressure.

Technical Indicators and Patterns

The Elliott Wave analysis presents a positive outlook for AVAX, suggesting that the token might be on the verge of a significant price increase. Additionally, the 3-day chart indicates a falling wedge pattern, which is typically considered a bullish signal. AVAX has rebounded from the lower trendline of this pattern, hinting at a potential breakout.

If a breakout occurs, AVAX could experience a rally similar to the impressive 200% surge seen in November-December 2023. This pattern, coupled with the controlled release of tokens, may provide a favorable environment for a price increase during the upcoming alt season.

Long-Term Market Outlook

The weekly chart for AVAX confirms an uptrend, with the token breaking out of its base and completing a textbook retest of resistance now turned into support. This support flip strongly reinforces the bullish trend, aligning with the broader positive sentiment in the cryptocurrency market.

The closing of the weekly candle in a bullish manner further supports the expectation of a continued uptrend. Analysts predict that Avalanche could see a bull run extending into Q4 of 2024, driven by both the controlled token release and the favorable market conditions.

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