AVAX Price Outlook: Will 9.5M Token Release Lead to a Drop?

The market has been agitated by the impending issue of cryptocurrency tokens valued at $900 million in February.With a planned token release of 9.5 million, Avalanche is in the lead. The effect on price stability in the market is a source of worry.

AVAX Price Outlook: Will 9.5M Token Release Lead to a Drop?
Source: Analytics Insight
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The release of almost $900 million worth of vested tokens from projects including Avalanche (AVAX), Aptos (APT), The Sandbox (SAND), Optimism (OP), and SUI is anticipated to occur in February on the cryptocurrency market.

Avalanche is leading the way with an airdrop to strike a balance between long-term commitment and short-term sell-offs, with the scheduled release on February 22 of 9.5 million tokens worth at around $320 million, targeted at strategic partners and team members.

Shiba Inu’s Massive January Burn: 9.9B Tokens Gone—Price Effects?

In a similar vein, Aptos intends to issue 24.8 million tokens on February 11th, valued at around $233 million. The distribution strategy of Aptos is intended to promote community engagement and provide market stability.

Concerns over price declines have been raised by the introduction of approximately $900 million worth of vested tokens into the cryptocurrency market. According to the tokenomics concept, volatility might result from an abrupt increase in supply.

Analysts and investors actively monitor these changes, taking into account the possible effects they may have on the market. In spite of the euphoria around the token launches, the cryptocurrency community is becoming cautious. It is assessing the potential effects of the supply boom on project valuations and the stability of the market as a whole. The strategic allocation of these tokens by the project must minimise adverse market effects.

The Previous Open Entire Avalanche

The same number of AVAX tokens were released on November 23.

Those tokens were then allocated for the airdrop and staking in addition to being given out to the team and strategic partners. We can make comparisons because this was the same as the following unlock.

Now that everything is taken into account, let’s look at the AVAX chart.

AVAX Cost Evaluation

AVAX’s price surged 470% on November 1st after breaking over its bear market declining trendline. From a low of $9 on October 19 to a high of $51 on December 24, the price increased.

Previous analysis of AVAX suggested that there may be a corrective phase or perhaps a downturn. This forecast is still accurate in spite of a recent increase. Avalanche is more likely to hit new highs if the price goes over $41.

AVAX, however, encounters resistance at a trendline that is dropping from the peak in December. This might result in a decline in price and a price rejection.

Should this signal the start of an extended bull market for Avalanche, a correction may ensue. Its support level should be in the neighbourhood of $20, which corresponds to the Fibonacci retracement levels of 0.5 to 0.618.

AVAX may begin a fresh uptrend when this corrective period is over and surpass its all-time high.

Following its last release on November 23, AVAX’s pricing stayed steady. Nevertheless, the price dropped 16% from about $23 on November 20 to $19 at the token release in the lead-up to the unlock expectation. In conclusion, we can predict that AVAX will decline in February based on this association and the findings of the chart analysis.

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