According to TokenUnlocks data, a $231 million token unlocking will take place in Avalanche (AVAX), which is experiencing a bull run.
Avalanche, one of the majors of the crypto market, has become one of the most talked about projects of recent times. Avalanche’s native token, AVAX, has increased by 175 percent in the last month. AVAX managed to rise above $ 20 with its rise that started at $ 8.65. The sensational rise was associated with market positivity and the rise of Solana (SOL).
AVAX’s rise has reached a dazzling level. However, according to TokenUnlocks data, this rise may be overshadowed at any time. Data revealed that $231 million worth of AVAX will be unlocked on November 24. With the unlocking, 10.24 million AVAX will be put into circulation.
Avalanche (AVAX) unlock may impact price
Avalanche (AVAX), which hosted a 175 percent increase in one month, will unlock a huge amount of tokens on November 24. According to data from TokenUnlocks, 10.24 million AVAX worth $231 million will be unlocked.
Of the 10.24 million AVAX to be unlocked, 4.5 million will be transferred to the team. The average value of the amount to be transferred to the team is around 100 million dollars. On the other hand, 2.25 million AVAX will be sent to strategic partners. Partners will own $50 million in AVAX. 1.67 million of the remaining AVAX will be sent to the Foundation and 1.13 million will be sent to airdrop. While the amount transferred to the foundation is close to 37 million dollars, the amount allocated for airdrop is around 25 million dollars.
The size and distribution of the lock opening could potentially trigger a drawdown. Since AVAX price is already seen as inflated, it could quickly decline below $20.
Looking at the chart, an intensification of selling pressure could push AVAX price back towards the $21.53 support. If it fails to gather strength from this support point, AVAX could decline sharply to $19.71. Although $19.71 is a strong support point, it can be broken easily due to the lock opening effect. This breakout could drop the AVAX price to $16.97. On the other hand, AVAX can regain $22.75 if it assumes a positive structure and price stability is achieved. In this case, AVAX will soon test the $24.63 resistance. A break of $24.63 may push the AVAX price to the $26.22 region.
