AVAX Network Activity Down – Will The Planned Token Unlock Bring Back The Energy?

Christian Encila

1 year ago

3 mins read

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Avalanche (AVAX) is gearing up for a significant unlock event that has sparked speculation among investors. The past month has witnessed a prevailing bearish sentiment, with volume indicators suggesting that the buying pressure might not be robust enough to counter the crypto’s prevailing losses.

Despite this recent decline, all eyes are on the impending unlock event, pondering the potential impact it might have on AVAX’s price trajectory.

Scheduled to occur later this week, the unlock event is based on data sourced from Token Unlocks. This data indicates that an impressive 9.54 million AVAX tokens, valued at over $100 million, are set to be unlocked on August 26. Such an event has historically brought about substantial market movements, prompting analysts to closely scrutinize the upcoming developments.

Source: Token Unlocks

AVAX Price Impact: A Waiting Game

However, experts caution against expecting an immediate or substantial price reaction to this unlocking event. Previous instances of similar events have been accompanied by downtrends in AVAX’s price. In the wake of such trends, there is a possibility that AVAX might breach the psychological support level at $10.

A closer examination of the current market data reveals that AVAX is currently priced at $10.24, exhibiting a slight decline of 0.7% according to CoinGecko. Over the span of the past week, the cryptocurrency has undergone a notable seven-day slump of 12.4%, further accentuating the challenges it faces.

AVAX price action today. Source: Coingecko

A deeper analysis of AVAX’s price trajectory unveils that the downtrend in its valuation began in July, with the most substantial drop occurring during the course of August. This suggests a cumulative effect of market forces that have impacted the coin’s value.

The looming unlock event introduces an additional layer of complexity to the current market landscape, leaving investors to ponder the potential ramifications.

AVAX market cap currently at $3.5 billion. Chart: TradingView.com

A Future Uncertain

As market participants await the unlock event, the crypto community is divided in its outlook. Some view it as a potential catalyst that could amplify the ongoing bearish trends, while others hold onto the hope that the event might signal a turning point for AVAX’s fortunes.

Such uncertainty is emblematic of the broader volatility that characterizes the cryptocurrency realm, where events can trigger both rapid appreciation and sudden depreciation.

AVAX finds itself in the midst of a challenging period marked by bearish trends and a potential unlocking event. The upcoming release of a substantial number of AVAX tokens introduces an element of suspense as investors wait to see if history will repeat itself with a further dip in price.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Toad World Blog

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.