Avalanche’s price was under heavy pressure before the token unlock event scheduled for Friday. AVAX tokens were trading at $10 Friday, slightly above the week’s low of $9.78 and the highest level of the index in July.
On Friday, developers are planning to launch over 9.7 million tokens onto the market. With a value of over $95 million, these tokens make up 2% of the entire network.
Token releases are popular within the crypto industry. In Avalanche’s case, the vesting process will end in July 2030. Currently, 380 million tokens are in circulation and 339 million are locked. The market cap for all AVAX unlocked tokens is $3.45 billion while the cap for diluted tokens is more than $7.2 billion. This suggests that AVAX holders should expect further dilutions to occur in the future.
The Avalanche ecosystem is not thriving. According to Llama DeFi data, the Avalanche ecosystem hosts over 151 million dollars worth of value locked (TVL). At its peak, it had 362 million tokens. In dollar terms, there is about a billion dollars worth of TVL in dApps such as Wonderland, AAVE, BenqiGMX, A, and Trader Joe.
On the 4H chart, the AVAX’s crypto price is in a clear downward trend. The recent price movements have gone below the important $12.10 support level, the lowest levels since June 18th. The price is also below the 50 day moving average and the swing is at its lowest point since June 10th. The Relative Strength Index (RSI) and the Stochastic Oscillator Oversold have both reached new lows.
Therefore, the outlook is negative for the token, and the next psychological threshold to watch is $8. The stop-loss for this trade is $10.50.
Those looking to buy Avalanche can do so on platforms such as eToro, which offers a large selection of cryptos and crypto/fiat or crypto/crypto pairs. Public is another investing platform that allows users to invest in stocks, ETFs, crypto, and alternative assets like fine art and collectibles.
