- The token’s volatility is likely to be low considering that it previously released 60% of its supply.
- AVAX could reach $43.50 if volume continues to support the price trend.
avalanche price [AVAX] According to data from CoinMarketCap, it has gained 7.80% in the past 24 hours. At the time of writing, the token was trading at $37.48.
Amazingly, this happened less than four days before the project’s next token was unlocked.
According to data from the Token Unlocks platform, AVAX is configured as follows: Release 2.49% Of the total supply, it was distributed on May 22nd.
This ratio is equivalent to 9.54 million tokens, worth $329 million. Once released, it means that 62.49% of the total AVAX supply will be part of the circulating supply.
Source: Unlock Token
AVAX gains large market share
Not necessarily better, considering that unlocking the tokens comes with a lot of volatility. The greater the unlock, the harder the price will fall.
However, projects with approximately 60% to 70% of their supply vested tend to have lower volatility.
In some cases, especially early in the unlock schedule, there will be higher prices. Interestingly, this also appears to be the case for AVAX.
To confirm the potential of the token, AMBCrypto investigated what is happening with the token on-chain. The first thing we observed was an increase in weighted sentiment.
At the time of writing, the weighted sentiment regarding the Avalanche project was -0.036.
Although the reading was negative, it was a noticeable increase from -o.574 on May 15th, indicating that participants are moving away from their bearish bias.
Like emotions, social dominance spikedAt the time of writing, this indicator stands at 1.046%, meaning that discussions about the project have improved.
Source: Santiment
Will prices continue to rise?
The combination of negative emotions and an increased share of social control can have a large compensatory effect.
This could push AVAX price to a very bullish target of $40 in the near term or $43.50 before the expected unlock.
However, traders may need to be careful. If she’s too socially dominant, it could be a sign of her FOMO. FOMO is an abbreviation for “Fear Of Missing Out.”
The last time this indicator was higher than its reading at press time, AVAX crashed from $35.08 to $31.42 within three days.
On the other hand, if sentiment spikes into positive territory, the bullish theory could be tested.
Additionally, volume supports the price increase. At the time of writing, Santiment’s on-chain data reveals that AVAX’s trading volume is up to $534.57 million, the highest amount in the past seven days.
Source: Santiment
Is your portfolio green? Check out the AVAX Profit Calculator
If the price continues to rise while volume continues to increase, a move towards $50 could occur in the short term.
However, if quantity increases as price decreases, or vice versa, this is evidence of decreasing demand. In this case, bullish predictions may be invalidated.
