In a landmark move, Avalanche (AVAX) has just completed its final set of token unlocks, releasing a significant amount of AVAX tokens to its team, foundation, strategic partners, and through airdrops. This pivotal event marks the transition to a more measured token release strategy, aimed at bolstering market stability and minimizing selling pressure.
Token Release Breakdown
In this recent unlock, Avalanche distributed 9.54 million AVAX tokens. Here’s the allocation breakdown:
- 2.25 million AVAX to strategic partners
- 1.67 million AVAX to the foundation
- 4.5 million AVAX to the team
- 1.13 million AVAX through airdrops
Experts suggest that this controlled release schedule, featuring 1.6 million AVAX tokens quarterly until 2030, is strategically designed to mitigate market volatility. By staggering the release, Avalanche aims to create a more stable market environment and reduce the risk of large sell-offs that could destabilize the token’s price.
AVAX Price Dynamics
Following the announcement, AVAX initially surged, reflecting a temporary boost in market sentiment. However, this rally was short-lived as broader market forces took over, driving the price down. As of the latest data, AVAX is trading at $26, experiencing a 1.45% drop over the last 24 hours. Despite this recent dip, AVAX has seen a weekly gain of 21%, highlighting its resilience amidst market fluctuations.
The 24-hour trading volume stands at $285 million, down by 3%, suggesting a period of consolidation. Analysts are closely watching the AVAX/USDT 4-hour chart, which indicates that the token has found a support range between $22.84 and $21.06. This level is crucial; maintaining it could set the stage for a potential bullish trend. Conversely, failing to hold this support might trigger increased selling pressure and drive the price lower.
Technical Indicators and Future Outlook
Positive signals are emerging from several technical indicators. The Elliott Wave analysis and the formation of a falling wedge pattern on the 3-day chart suggest a bullish trend could be on the horizon. Historical patterns from November to December 2023 hint at a potential 200% price increase if AVAX breaks out of its current wedge.
On a weekly scale, AVAX has successfully broken out of its base and retested critical resistance levels, turning them into support. This technical confirmation is bolstered by heightened social engagement, with AVAX’s presence on platforms like X (formerly Twitter) reaching new highs.
Amidst these technical developments, Avalanche has attracted notable institutional interest. Grayscale Investments has launched the Grayscale Avalanche Trust, providing investors with indirect exposure to AVAX and the Avalanche ecosystem. This move underscores the growing institutional interest in Avalanche and could enhance its market value proposition.
Also Read: Weekend Discord Hacks Target Crypto Projects: Avalanche, ZKsync Compromised After Polygon Attack
In another significant development, Franklin Templeton has expanded its blockchain presence onto the Avalanche network, further validating Avalanche’s role in institutional finance and its potential for sustainable growth.
As AVAX navigates this critical phase, the combination of strategic token unlocks, positive technical indicators, and growing institutional support paints an optimistic picture for its future. Investors and market watchers will be keenly observing how these factors unfold in the coming weeks.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
