- AVAX will undergo a huge unlock of more than $88 million in next 5 days.
- AVAX unlock token allocation explained.
- Possible chances of freefall in AVAX.
AVAX:
AVAX is currently trading at $9.25, down by 1.3% in the last 24 hours. The current market cap of AVAX is $3.278 billion, with a circulating supply of 353.934 million tokens, representing 49.16% of AVAX’s total supply. Over the past 7 days, AVAX has experienced a 6.6% decline and reached a low of $9.07, the lowest price since January 2021. In the last 30 days, AVAX has seen a 20% decrease in its value.
On August 26th, AVAX faced a significant unlock of $102 million, which had a detrimental impact on its price. Following this August dump, AVAX dropped to its lowest level in 2 years, despite trading above $10 prior to the unlock event. The consequences of this unlock are still affecting AVAX’s price, leading to a continued decline. You can access the article discussing AVAX’s previous unlock by clicking here.
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In just 5 days, on September 21st, AVAX is set to undergo another unlock, involving 9.54 million tokens worth $88.17 million. This unlock represents 2.7% of AVAX’s total current market cap. Out of these 9.54 million tokens, 1.13 million will be allocated for an airdrop, 2.25 million for strategic partners, $4.5 million for the team, and 1.17 million AVAX tokens for the foundation.
In our previous article, we discussed the challenges AVAX faces in maintaining its leadership position in the market, with the most prominent issue being the decline in on-chain activity.
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AVAX Technical Analysis:
AVAX was trading within a descending triangle and recently broke below its support line, now encountering resistance from the previous support line. The $9 to $9.3 region is a crucial support zone for AVAX, and it is imperative to sustain this level. If this support is breached, there are no significant support levels until $4.5, which could lead to a sharp price decline.
The technical indicators, such as the moving average convergence divergence and the relative strength index, indicate a bullish sentiment. Successfully executing this bullish divergence could result in AVAX’s price rising above the lower line of the descending triangle, a highly favorable outcome.
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Conclusion:
In conclusion, AVAX is currently navigating a challenging market landscape with both external and internal factors influencing its price and performance. The impending token unlock on September 21st adds further uncertainty to its trajectory. AVAX must grapple with the aftermath of a significant unlock in August, which continues to impact its value.
Maintaining the critical support zone between $9 and $9.3 is imperative for AVAX to prevent a potential freefall in price, as there are no substantial support levels until $4.5 below this range. On a positive note, technical indicators suggest a bullish divergence that, if realized, could see AVAX breaking above the lower line of its descending triangle, presenting a bullish scenario.
However, AVAX’s ability to address its on-chain activity decline and adapt to market challenges will be pivotal in securing its position as a leader in the cryptocurrency space. Investors and enthusiasts alike will be closely watching how AVAX navigates these hurdles in the coming days and weeks.
Chart from TradingView
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
