Will Avalanche (AVAX) Price Buckle Under Pressure as $100 Millon Token Unlock Looms?

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.

Timeline of Avalanche

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.

The world of cryptocurrency is on the brink of a revolutionary transformation as Inspect, a pioneering force in the Web3 domain, and Avalanche, a dynamic smart contracts platform, join forces to pioneer multichain innovation. This strategic partnership, announced by the two companies, heralds a new chapter in the evolution of

AVAX staking will reportedly be among the services offered through AvaCloud. In other words, Avalache just unlocked a new corridor that will facilitate AVAX demand for staking which may encourage a long-term bias.

Avalanche (AVAX) has found itself ensnared within a critical price zone, grappling with a lackluster trading volume that has hindered its price action. The coin's journey has been fraught with challenges as market sentiment takes a bearish stance, casting shadows over its potential upward trajectory.

Ethereum (ETH) competitor Avalance (AVAX) witnessed an uptick in on-chain activity in the second quarter of 2023, according to the crypto data firm Nansen. Avalanche's C-Chain, the project's default smart contract blockchain, saw between 200,000-550,000 daily transactions throughout the second quarter.