- Avalanche unlocks 1.33% of the maximum AVAX supply.
- Analyses indicate that the bottom could be reached.
Solana (SOL), Worldcoin (WLD) and Avalanche (AVAX) led the charge for unlocking altcoin tokens with AVAX releases 9.54 million AVAX tokens, representing 1.33% of its total maximum supply.
This AVAX event marks the final major token release, with allocations made to Team, Foundation, Strategic Partner, and Airdrop recipients.
As the latest major release, many are wondering whether this influx of AVAX will inflate Avalanche’s price or stabilize it.
Source: Token Unlock
Going forward, Avalanche will transition to smaller, foundation-only token releases, releasing 1.6 million AVAX each quarter through July 20, 2030.
This reduced unlocking schedule is a strategic move designed to manage supply and minimize selling pressure, potentially keeping the price of AVAX stable despite the gradual increase in tokens in circulation.
This release will have a significant impact on the price and should therefore be closely monitored. Historically, similar token releases have resulted in notable price movements.
Source: X
AVAX is already showing signs of upside as the overall cryptocurrency market surges.
Is AVAX at its lowest?
From a technical perspective, AVAX appears to have found its bottom, with price action suggesting potential upside. On the AVAX/USDT 4-hour chart, price has found support between $22.84 and $21.06.
A close above this range by the end of the week would indicate a bullish signal, while a drop below this band could trigger additional selling pressure. Elliott wave analysis also shows a positive outlook for AVAX.
Source: TradingView
Descending wedge pattern
Additionally, the 3-day chart of Avalanche is showing a falling wedge pattern, which is a bullish signal. AVAX has bounced off the lower trendline, and there is confidence that a breakout of this wedge is imminent.
If this breakout occurs, AVAX could see a rally similar to the 200% surge seen in November-December 2023.
Source: TradingView
The controlled release of AVAX tokens could further support this potential price increase during the upcoming altseason.
The weekly confirms an upward trend
The weekly chart also confirms an uptrend for Avalanche. AVAX has not only broken above its base, but also made a classic retest of the resistance that has now turned into support.
The reversal of AVAX support strongly confirms the uptrend, aligning with the general positive sentiment in the broader cryptocurrency market and favorable conditions for risk assets.
Source: TradingView
With the bullish close of the weekly candle, a continued uptrend is expected for Avalanche (AVAX) in Q4 2024.
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Mentions and commitment
Social engagement is another crucial factor in predicting price movements, and mentions of Avalanche (AVAX) on Crypto Twitter and other platforms are on the rise.
This increased attention is often correlated with price increases, suggesting that AVAX’s price could continue to rise as it gains visibility and interest within the crypto community.
Source: Kaito
