Avalanche is among the top gainers, looking at the formation in the daily and weekly charts. After the dip in the better part of H1 2024, AVAX prices are beginning to look up.
Last week, AVAX
Avalanche
4.39%
Avalanche
AVAX
Price
$7.59
4.39% /24h
Volume in 24h
$329.35M
Price 7d
broke $30 for the first time since September, a milestone for bulls.
As buyers target $90 in the coming weeks, analysts are concerned whether the rally of early November 2024 will continue.
$AVAX is about to break through the $37 wall and once it does, the next stop will be towards $50. This will absolutely send $COQ$AVAX has its biggest enhancement since launch, AVAX9000, going into testnet this month and will be live within 90 days.
Once $AVAX makes its move,… pic.twitter.com/owSeCRYKA0
— Grronk (@0xGrronk) November 18, 2024
AVAX Price Rallying: Will This Token Unlock Slow Bulls?
Earlier today, the foundation unlocked 1.67 million AVAX worth roughly $60 million.
While the release is significant, especially for early investors, the team, and any stakeholders who might be looking to cash in on the leg up, it could negatively affect the AVAX market dynamics.
To understand why, it should be clarified that every token unlocking event is scheduled.
In the case of Avalanche, the foundation chooses to vest and release tokens depending on the stakeholder.
For example, the foundation received a bulk portion in the first three months before a linear unlock system was employed in December 2020.
26.67 million AVAX will be released quarterly for 114 months, with the last release in July 2030.
While token unlocks automatically increase supply, exerting downward pressure on prices, in this case, AVAX, something exciting about the current stake of AVAX unlocking is emerging.
All tokens have been distributed to investors, the community, and other strategic partners, looking at CryptoRank data.
(Source)
The foundation is the only entity receiving tokens, which will continue until July 2030.
Every three months, 1.67 million AVAX will be released, regardless of market conditions.
Since tokens are in the hands of the foundation, not investors, the probability of them dumping and slowing down bulls is low–a net positive.
What’s more?
Avalanche has released 65% of its 720 million AVAX into circulation, leaving 245.34 million tokens locked.
(Source)
Avalanche Bulls Confident: Is $50 AVAX Price on The Cards?
Considering this development and the fact that the foundation will hold a large portion of unlocked coins, the project’s creators, AVAX, will likely continue expanding.
A breakout above $40 and beyond the consolidation of the past week will lay the foundation for AVAX to nearly double and rise to March 2024 highs of nearly $70.
(AVAXUSDT)
The pace of this expansion depends partly on the success of Bitcoin bulls. If the world’s most valuable coin breaks $100,000, altcoins like AVAX will also benefit from the momentum. In that case, bulls will confirm the leg-up of early November, lifting sentiment and prices to fresh Q4 2024 highs.
In the medium to long term, the release of the Avalanche 9000 upgrade will catalyze AVAX demand.
Avalanche 9000 will simplify the launching of chains on the mainnet by reducing validator costs and introducing other vital changes.
Besides eliminating the need for users to stake 2,000 tokens to run a validator node, those who want to help secure the network will now be paying at most 10 AVAX per month, reducing upfront costs.
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