Avalanche Price Analysis: What Are The Chances Of AVAX Price Bouncing Back From $10?

AVAX price today attempts another breakdown below the crucial $10 psychological mark. With an intraday fall of 1.10%, a bearish candle cracks below $10 and forms a low of $9.91. Closing below $10 will mark a strong downtrend and increase the bearish sentiment around Avalanche in the market.

Timeline of Avalanche

Avalanche (AVAX) is experiencing one of its lowest periods in history as many of its holders are recording massive losses, according to on-chain data from crypto analytics platform IntoTheBlock (ITB).

Amidst Avalanche's once-promising ascent, most holders now clutch a bearish reality. Over 90% face losses while development thrives and trading volume wanes, painting a complex landscape.

Bearish headwinds have gripped the Avalanche community ahead of the upcoming $97.4 million token unlock slated for August 26. Historical on-chain data analysis explores previous unlock events to predict how Avalanche (AVAX) price could react in the coming days.

Avalanche (AVAX) is gearing up for a significant unlock event that has sparked speculation among investors. The past month has witnessed a prevailing bearish sentiment, with volume indicators suggesting that the buying pressure might not be robust enough to counter the crypto's prevailing losses.

The Avalanche token (AVAX), like most other altcoins, felt the bearish impact of the general market downturn, which resulted in a billion-dollar liquidation in the crypto market. Historical price data, however, shows that AVAX has been experiencing selling pressure long before this recent market crash.

While most altcoins are looking toward a recovery from the recent market crash, the AVAX price seems to be gearing up for the opposite. The reason behind this is the massive token unlock that is set to occur this week, which will undoubtedly place more sell pressure on the already struggling price of the digital asset.

The Avalanche Foundation is providing up to $3 million in AVAX tokens to Dexalot, the central limit order book (CLOB) decentralized exchange (DEX) built “on an Avalanche Subnet.” The incentives come from Avalanche Multiverse, “a comprehensive program nurturing Avalanche Subnet growth and adoption.

Avalanche (AVAX) — among the leading layer-1 blockchains for DeFi and Web3 — could suffer a significant negative impact in price on August 26, as 9.54 million AVAX ($101.14 million, at press time prices) of new tokens will be put into circulation on this day.

Following the remarkable recovery in early 2023, the AVAX price action enters a crushing correction phase. Experiencing extensive selling pressure at $21, the AVAX prices fail to find support at any crucial level for long. Bouncing back from $11 in June lit lamps of hope for Avalanche, leading to a 32% gain to reach $15.

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