Avalanche price prediction ahead of the big AVAX token unlock

November 19, 2023 08:05 PM PST | By Invezz

Avalanche price prediction ahead of the big AVAX token unlock — Image source: Invezz

Trader Joe, BENQI doing well

Avalanche has done well in the past few days, helped by the broad cryptocurrency rally and the performance of its ecosystem. BENQI, its biggest DEX, has seen its total value locked (TVL) of over $343 million. It has risen by about 90% in the past 30 days while its token has surged by over 100% from its lowest point this year.

Trader Joe, a leading DEX, has also become popular as the TVL has roared back by over 44% in the past 30 days. JOE, its token, has risen by more than 83% from its lowest point this year while the DEX has gained market share. Other players of the ecosystem like Yield Yak, Balancer V2, and Vector Finance have soared.

The next big Avalanche news will be the upcoming token unlock. Avalanche will unlock 9.54 million tokens valued at over $212 million tokens on November 24th. Over 55% of the tokens have been unlocked while the vesting schedule is set to end in 2030. These tokens will go to strategic partners, foundation, team, and airdrop members.

Token unlocks are usually seen as being bearish for a cryptocurrency because they lead to more dilution. These unlocks are compared to when a company sells more shares, which also dilutes existing shareholders.

Unlike other tokens, however, Avalanche compensates the token unlocks with burning, which reduces the number of tokens in circulation. Data compiled by SnowTrace shows that Avalanche burned 5,619 tokens on Sunday, the biggest number since July.

Avalanche price prediction

AVAX chart by TradingView

On the daily chart, we see that the AVAX token price has been in a strong bullish trend in the past few weeks. It has surged by over 165% from the year-to-date low. The 100-day and 50-day Exponential Moving Averages (EMA) have made a bullish crossover.

Further, the Stochastic Oscillator and the Relative Strength Index (RSI) have moved above the overbought level. The price has also moved above the key resistance points at $21.58, the highest swing on April 18th. It also rose above $22.80, the highest swing in February.

Therefore, the outlook for Avalanche price is still bullish, with the next point to watch being the psychological point at $25.

The post Avalanche price prediction ahead of the big AVAX token unlock appeared first on Invezz

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