According to Cointelegraph, AVAX price appears to be in the early stages of a trend reversal after nearly six months of decline. On August 5, AVAX traded at $17.29, marking its lowest price in nine months. However, over the past two weeks, the altcoin has seen a 45% increase, reaching $25.25. This recovery comes after a significant drop below $18, which was part of a broader market sell-off during Bitcoin's correction to $49,500 on August 18. Despite this, AVAX has lagged behind the wider market since peaking at $65 on March 18.
Positive developments may be contributing to the recent uptick in AVAX's price. Investors have focused on the Avalanche token unlock schedule, noting a significant reduction in token unlock events after the end of 2024. Many believe that token unlocks create sell pressure and hinder long-term ecosystem development, which supports the token's value. After 2024, only the Avalanche Foundation will unlock tokens, making the process more transparent and predictable.
On August 22, Grayscale Investments announced the launch of the “Grayscale Avalanche Trust,” providing investors with exposure to the growing Avalanche ecosystem. On the same day, Franklin Templeton expanded its Franklin Onchain US Government Money Fund to the Avalanche network. This fund, launched in 2021, allows institutional investors access to Franklin Templeton’s blockchain-integrated record-keeping system, Benji Investments.
While these developments are not directly related to AVAX's fundamentals, the positive sentiment they generate could be influencing investor perceptions of the altcoin's price prospects. The recent price surge aligns with the Grayscale announcement and an increase in liquidations as AVAX's funding rate briefly turned positive. Sustained uptick in spot buying volumes, especially given the influence of news events, partnership announcements, and mainnet upgrades on cryptocurrency prices, will be crucial to watch. If spot buying volumes continue or if there is a notable increase in margined long positions, AVAX could target the liquidity above the $25 to $27 resistance cluster, potentially reaching the $28 to $33 range.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.