AVAX Price Closes In On $40 With Latest 10% Surge
The Avalanche token has been in a positive form recently, with the AVAX price turning in a good performance over the past week. This latest price boost makes a run to the $40 level more or less inevitable for the altcoin.
However, investors are curious to see how long this rally will last, especially with the unlocking of a substantial amount of AVAX tokens on the horizon.
AVAX Price Overview
As of this writing, the AVAX price is slightly above $39, reflecting a nearly 8% jump in the last 24 hours. This recent increase only underscores how well the cryptocurrency has been performing in recent weeks.
According to data from CoinGecko, the value of the Avalanche token has increased by approximately 10% in the past week. After sinking to a low of $28 in late January, AVAXs price has recovered quite well in the new month, surging by more than 17% since February started.
With the latest price growth, Avalanche looks set to reclaim $40, a level it occurred between December 2023 and early January 2024. The token, however, lost this level due to the downturn that hit the entire crypto market following the Bitcoin spot ETF approval.
With $40 already in sight, the question is whether AVAX can sustain a rally above this mark in the long term. While price indicators like the Relative Strength Index (RSI) are not showing any signs of trend reversal, upcoming events suggest that the Avalanche token might need to overcome some degree of bearish pressure in the coming days.
Avalanche To Unlock About $370 Million Worth Of Tokens
According to on-chain data, Avalanche will unlock 9.54 million tokens (worth about $372 million) on February 22. This figure represents about 2.6% of AVAXs total supply and will be disbursed in four tranches.
Breaking it down, 2.25 million AVAX is expected to go to strategic partners, 1.67 million coins to the foundation, 4.5 million tokens to the Avalanche team, and 1.13 million AVAX are set to be released in a little over a week.
It is common for crypto projects to execute token unlocks, which may have a corresponding impact on the value of the unlocked token (AVAX, in this case). This effect is because this substantial amount of token, once unlocked, may become available for trading on the open market.
If these newly unlocked tokens are dumped on the open market, this can place some bearish pressure on the burgeoning price of AVAX. This selling pressure could halt the recent growth of the Avalanche token.
Read more: https://www.newsbtc.com/avalanche/avax-price-closes-in-on-40-with-latest-10-surge/
Text source: NewsBTC
