Avalanche (AVAX) is preparing for a significant unlocking event that has sparked speculation among investors. Over the past month, there has been a prevailing pessimistic sentiment, with volume indicators suggesting that buying pressure may not be strong enough to counter the cryptocurrency’s prevailing losses.
Despite this recent downturn, all eyes are on the upcoming unlocking event, with many contemplating the possible impact it could have on AVAX’s price development.
The unlocking event is scheduled for later this week, based on data from token unlockings. This data indicates that an impressive 9.54 million AVAX tokens, worth over $100 million, are set to be unlocked on August 26. Such an event has historically led to significant market movements, prompting analysts to closely examine the upcoming developments.
However, experts caution against expecting an immediate or substantial price reaction to this unlocking event. Previous incidents of similar events have been accompanied by downward trends in AVAX’s price. As part of these trends, there is a possibility that AVAX may break the psychological support level at $10.
Taking a closer look at current market data, AVAX is currently trading at $10.24, representing a slight decline of 0.7% according to CoinGecko. Over the past week, the cryptocurrency experienced a notable seven-day decline of 12.4%, further exacerbating the challenges it faces.
A deeper analysis of AVAX’s price trajectory reveals that the downtrend in its valuation began in July, with the strongest decline occurring throughout August. This suggests a cumulative effect of market forces impacting the coin’s value.
The upcoming unlocking event adds an additional layer of complexity to the current market landscape, leaving investors pondering the potential implications.
As market participants await the unlocking event, the crypto community is divided in its views. Some see it as a potential catalyst that could further intensify the ongoing downtrends, while others hold onto hope that the event could signal a turning point for AVAX’s fortunes.
This uncertainty is emblematic of the general volatility that characterizes the cryptocurrency space, where events can trigger both rapid appreciation and sudden devaluation.
AVAX is currently in a challenging phase marked by bearish trends and a potential locking event. The impending release of a significant number of AVAX tokens is causing tension as investors wait to see if history will repeat itself with another price decline.
(Note: The content of this website should not be construed as investment advice. Investing carries risks, and your capital is at risk.)
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