Avalanche Price on Track to Reclaim $40 Despite Token Unlocking Concerns

Avalanche Price on Track to Reclaim $40 Despite Token Unlocking Concerns

Time Stamp: February 10, 2024 4:00 PM
Source Node: 2477198
February 11, 2024 at 01:00 AM GST updated: February 10, 2024 at 11:35 PM 2 mins read News
  • The AVAX price is approaching the $40 mark, showcasing recent strong performance.
  • Avalanche is scheduled to unlock $370 million worth of tokens on February 22, which could influence market dynamics.
  • Investors are speculating on whether AVAX can sustain its rally above $40, considering the imminent token release and potential market pressure.

Avalanche (AVAX) has seen significant upward momentum recently, with its price inching closer to the $40 threshold. Within just 24 hours, AVAX experienced an impressive 8% surge, highlighting its robust performance in the cryptocurrency market. 

This surge comes on the heels of a broader trend where AVAX has been steadily climbing in value over the past week, reflecting a resilient market sentiment toward the altcoin. However, amidst this positive trajectory, investors are closely monitoring an upcoming event that could potentially impact AVAX’s price dynamics. 

On February 22, Avalanche is set to unlock approximately $370 million worth of tokens, representing a considerable portion of AVAX’s total supply. This unlocking process will occur in four tranches, with varying amounts allocated to strategic partners, the foundation, the Avalanche team, and the wider market.

The impending token unlock has sparked speculation and uncertainty among investors regarding its potential effects on AVAX’s price trajectory. Historically, significant token unlocks have exerted downward pressure on cryptocurrency prices as newly available tokens flood the market, leading to increased selling activity. 

As such, investors are questioning whether AVAX can sustain its rally above the $40 mark in the face of potential selling pressure induced by the unlocked tokens. Despite these concerns, indicators such as the Relative Strength Index (RSI) do not currently show any signs of a trend reversal, suggesting that bullish sentiment may persist in the short term. 

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