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- After a comfortable one-month rally, Avalanche’s daily chart turned red.
- AVAX’s financing rate fell along with its price.
Avalanche [AVAX] showed a commendable bull rally last week as the price rose nearly 25%. However, the good days came to an end when the token’s daily price chart turned red.
Things could get worse for AVAX as it expects another round of token unlocks, which could further drive down the price in the coming days.
Avalanche investors should be careful
AVAX surprised investors last month when its price rose more than 125%, allowing it to increase its market capitalization. But this trend came to an end in the recent past.
According to CoinMarketCapThe price of AVAX has fallen by almost 8% in the last 24 hours. At the time of writing, it was trading at $20.83 with a market cap of over $7.4 billion.
The price drop caused the token’s social metrics to drop.
When checked, AMBCrypto found that Avalanche’s social dominance has decreased by 6.8% over the past 24 hours. Another bearish measure was the Altrank, which has been rising lately.
Source: LunarCrush
Things could get worse for Avalanche as it expects the next round of token unlocks on November 24, 2023. Token Unlocks recently posted a tweet highlighting this upcoming event.
$212 million $AVAX Unlocks in just 3 days!
Save the Date: November 24
Unlock 9.54M $AVAX – that is no less than 2.68% of Cir. delivery.Who benefits? Here’s the setup:
1. Strategic partners
2. Foundation
3. Team
4. Air dropStay ahead with real-time updates and expert insights.
For… pic.twitter.com/veBjfaHH5t— Token Unlocks (@Token_Unlocks) November 20, 2023
9.54 million in two days AVAX will be released, which has a value of over $189 million.
The upcoming unlock will increase the token’s circulating supply by 2.68%. As of now, AVAX has unlocked 55% of its total supply, and the remaining 398.55 million tokens will be unlocked in the coming years.
Source: Token Unlocks
AVAX investors should be careful as token unlocks are typically followed by price drops due to supply and demand theory. The price of an asset falls when its supply increases because such episodes reduce the demand for the asset in the market.
Does Avalanche have any other concerns?
AMBCrypto checked the token’s on-chain metrics to see if there were any other red flags for investors aside from the token’s impending unlock.
The positive was that AVAX‘s development activity remained high over the past week. One-week price volatility also fell sharply, reducing the likelihood of a further price decline in the near term.
Source: Santiment
Read Avalanche of [AVAX] Price prediction 2023-24
AMBCryptro’s analysis of Coinglass’ facts revealed that the token’s funding rate fell sharply as its price plummeted. This meant that derivatives investors were reluctant to buy AVAX at a lower price. Therefore, there were changes in a trend reversal.
Things on the network activity front also looked robust for Avalanche. Over the past seven days, daily transactions on the blockchain have skyrocketed. A similar trend was also observed in terms of AVAX‘s daily active addresses, which looked optimistic.
Source: Artemis
