The Avalanche token has been in positive form lately, with the AVAX price seeing good performance over the past week. This latest price increase makes a run to the $40 level more or less inevitable for the altcoin.
However, investors are curious to see how long this rally will last, especially with a significant amount of AVAX tokens on the horizon.
AVAX price overview
At the time of writing, the AVAX price is just above $39, reflecting an increase of almost 8% in the last 24 hours. This recent surge only underlines how well the cryptocurrency has performed in recent weeks.
According to data from CoinGecko, the value of the Avalanche token has increased by around 10% over the past week. After falling to a low of $28 in late January, AVAX’s price has recovered quite well in the new month and is up more than 17% since the start of February.
With the latest price growth, Avalanche appears to be regaining $40, a level that occurred between December 2023 and early January 2024. However, the token lost this level due to the downturn that hit the entire crypto market after the approval of the Bitcoin spot ETF.
With $40 already in sight, the question is whether AVAX can sustain a rally above this level in the long term. Although price indicators such as the Relative Strength Index (RSI) show no signs of trend reversal, upcoming events suggest that the Avalanche token may have to overcome some degree of bearish pressure in the coming days.
Avalanche to unlock approximately $370 million worth of tokens
According to on-chain data, Avalanche will unlock 9.54 million tokens (worth approximately $372 million) on February 22. This figure represents approximately 2.6% of AVAX’s total supply and will be paid out in four tranches.
Breaking it down, 2.25 million AVAX is expected to go to strategic partners, 1.67 million coins to the foundation, 4.5 million tokens to the Avalanche team, and 1.13 million in just over a week AVAX will be released.
It is common for crypto projects to perform token unlocks, which can have a corresponding impact on the value of the unlocked token (AVAX in this case). This effect is because this A significant amount of token, once unlocked, could become available for trading on the open market.
If these newly unlocked tokens are dumped onto the open market, it could put some bearish pressure on AVAX’s rapidly rising price. This selling pressure could halt the Avalanche token’s recent growth.
AVAX price approaches the $40 mark on the daily timeframe | Source: AVAXUSDT chart on TradingView
Featured image from iStock, chart from TradingView
Disclaimer: The article is for educational purposes only. It does not represent NewsBTC’s views on buying, selling or holding investments and of course investing involves risks. You are advised to conduct your own research before making any investment decisions. Use the information on this website entirely at your own risk.