Avalanche, a blockchain platform gearing up for major events during the Month of Love, is gearing up for significant developments. As February begins, the cryptocurrency market is expecting around $900 million worth of vested tokens to be released from various projects. This imminent influx into the market has triggered a wave of concern among investors who are closely watching the unfolding scenario.
Projects involved in this token launch include Avalanche (AVAX), Aptos (APT), The Sandbox (SAND), Optimism (OP), and SUI. Avalanche strategically targets strategic partners, team members, and airdrops to balance long-term commitment with potential short-term selloffs.
Avalanche Preparation for Major Token Launches
Avalanche, scheduled to launch on February 22nd, will release 9.5 million tokens worth approximately $320 million. Likewise, Aptos is preparing to launch 24.8 million tokens worth approximately $233 million on February 11. Aptos’ distribution strategy aims to ensure market stability while fostering community participation.
The imminent launch of vested tokens has the cryptocurrency community on high alert. Investors and analysts are closely monitoring developments with a mix of excitement and caution. While excitement abounds for the token launch, there is also caution as market participants assess how a surge in supply could impact the project’s valuation and overall stability.
Avalanche currently trading at $35.76 on the daily chart: TradingView.com
Exploring Potential Correction Stages: AVAX Price Analysis
Avalanche (AVAX) recently captured the market’s attention for its impressive price-to-performance ratio, boasting a whopping 470% gain since breaking the bearish trendline on November 1st.
Recent analysis shows that AVAX is currently facing resistance on a downward trend line from the December high, which could lead to a price rejection and subsequent decline.
If this correction marks the beginning of a sustained bullish phase for Avalanche, a support level around $20 in line with the 0.5-0.618 Fibonacci retracement level could come into play. Following this correction phase, AVAX could embark on a new uptrend, potentially pushing it past its all-time highs.
Image source: DefiLlama
Meanwhile, AVAX has grown exponentially in the past year and is now the 6th largest DeFi chain, according to DeFiLlama data. An artificial intelligence (AI)-based price prediction model predicts that the price of the AVAX token will surge more than 500% from current levels, exceeding $200 by early 2025.
Previous AVAX unlocks and impact on the market
It is important to remember that the unlocking of AVAX’s previous tokens on November 23rd did not result in any significant price movements. However, ahead of the unlock, the price fell 16% from around $23 on November 20 to $19 at the time of the token’s launch.
This historical precedent highlights the importance of closely monitoring market dynamics during token launch events. Market participants should exercise caution and carefully consider the potential impact these developments may have on their investment strategies.
Featured image from Adobe Stock, chart from TradingView
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