Avalanche (AVAX) Surges 7% Before Token Unlock: Will $43.50 Be Reached?

  • Despite having already released 60% of its supply, the token’s volatility remains relatively stable.
  • If the trading volume continues to support price movements, AVAX could reach $43.50.

The value of Avalanche [AVAX] has surged by 7.80% in the past 24 hours, as reported by CoinMarketCap data. At present, the token is trading at $37.48.

This increase is occurring just days ahead of the project’s next token unlock event.

According to information from the Token Unlocks platform, AVAX is scheduled to release 2.49% of its total supply into circulation on May 22nd.

This release amounts to 9.54 million tokens, valued at $329 million. Upon completion, the circulating supply of AVAX would increase to 62.49% of the total supply.

AVAX price ahead of its token unlock

Source: Token Unlocks

AVAX’s Share of the Market

Token unlock events can sometimes lead to significant price fluctuations. Projects with a majority of their supply already in circulation tend to experience less volatility.

In certain cases, these projects see price increases, particularly during the initial stages of the unlock process. AVAX appears to be following this trend.

To assess the token’s potential, AMBCrypto examined the on-chain activity of the Avalanche project. Our analysis revealed a growing Weighted Sentiment.

Currently, the Weighted Sentiment for the Avalanche project stands at -0.036.

Although still negative, this represents a significant improvement from -0.574 on May 15th, suggesting a shift away from bearish sentiment.

Similarly, the Social Dominance metric has shown a notable increase. Currently, it stands at 1.046%, indicating a more positive discussion around the project.

AVAX social dominance and sentiment hits new highsAVAX social dominance and sentiment hits new highs

Source: Santiment

Unstoppable Price Surge?

A combination of improving sentiment and increased social dominance could lead to further price gains.

This upward momentum could drive AVAX’s price to $40 in the short term, with a potential bullish target of $43.50 before the unlock event.

However, traders should exercise caution. A significant rise in social dominance could signal FOMO (Fear Of Missing Out).

In the past, when social dominance exceeded current levels, AVAX’s price dropped from $35.08 to $31.42 within a few days.

If sentiment turns positive, it would provide further validation for the bullish outlook.

Moreover, the surge in trading volume supports the price rally. Currently, Santiment data shows that AVAX’s volume has reached $534.57 million, its highest level in the last week.

AVAX volume and price increases suggesting a bullish move for the tokenAVAX volume and price increases suggesting a bullish move for the token

Source: Santiment

Is your portfolio seeing green? Use the AVAX Profit Calculator to find out!

If the trading volume continues to rise alongside the price, AVAX could quickly reach $50.

However, a mismatch between volume and price trends could indicate weakening demand, potentially disproving the bullish forecast.

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