The Avalanche token has been in a optimistic type not too long ago, with the AVAX value handing over efficiency over the previous week. This newest value enhance makes a run to the $40 stage roughly inevitable for the altcoin.

Nonetheless, traders are curious to see how lengthy this rally will final, particularly with the unlocking of a considerable quantity of AVAX tokens on the horizon.

AVAX Value Overview

As of this writing, the AVAX value is barely above $39, reflecting an almost 8% soar within the final 24 hours. This current enhance solely underscores how properly the cryptocurrency has been performing in current weeks.

In line with information from CoinGecko, the worth of the Avalanche token has elevated by roughly 10% prior to now week. After sinking to a low of $28 in late January, AVAX’s value has recovered fairly properly within the new month, surging by greater than 17% since February began.

With the most recent value progress, Avalanche appears set to reclaim $40, a stage it occurred between December 2023 and early January 2024. The token, nonetheless, misplaced this stage as a result of downturn that hit the complete crypto market following the Bitcoin spot ETF approval.

With $40 already in sight, the query is whether or not AVAX can maintain a rally above this mark in the long run. Whereas value indicators just like the Relative Energy Index (RSI) usually are not exhibiting any indicators of pattern reversal, upcoming occasions recommend that the Avalanche token would possibly want to beat a point of bearish stress within the coming days.

Avalanche To Unlock About $370 Million Price Of Tokens

In line with on-chain information, Avalanche will unlock 9.54 million tokens (value about $372 million) on February 22. This determine represents about 2.6% of AVAX’s complete provide and shall be disbursed in 4 tranches.

Breaking it down, 2.25 million AVAX is predicted to go to strategic companions, 1.67 million cash to the muse, 4.5 million tokens to the Avalanche staff, and 1.13 million AVAX are set to be launched in somewhat over every week.

It is not uncommon for crypto tasks to execute token unlocks, which can have a corresponding impression on the worth of the unlocked token (AVAX, on this case). This impact is as a result of this substantial quantity of token, as soon as unlocked, could develop into out there for buying and selling on the open market.

If these newly unlocked tokens are dumped on the open market, this could place some bearish stress on the burgeoning value of AVAX. This promoting stress may halt the current progress of the Avalanche token.

AVAX value approaches the $40 mark on the day by day timeframe | Supply: AVAXUSDT chart on TradingView

Featured picture from iStock, chart from TradingView

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