$BTC Is it time for Avalanche (AVAX) price to turn bullish?
Avalanche price gained 16%+ in the last week, but are positive media headlines enough to sustain the AVAX.
After spending nearly six months in a downtrend, AVAX price looks to be in the early stages of a trend reversal. On Aug. 5, it traded at $17.29, its lowest price in nine months. Over the past two weeks, the altcoin has reversed course with a 45% gain to $25.25.
While AVAX’s flash crash under $18 was mirrored by most altcoins which also sharply sold off during Bitcoin’s
BTC
$63,838
Aug. 18 correction to $49,500,
$26.25
has been a laggard versus the wider market since topping out at $65 on March. 18.
Positive news could be partially responsible for the recent uptick in the AVAX price. This week, AVAX investors zoomed in on the Avalanche token unlock schedule and noted that a sharp reduction in the number of token unlock events occurs after the end of 2024. Many investors believe that token unlocks generate sell pressure and deter the various types of long-term ecosystem development that support value accretion to the token.
On Aug. 22, asset manager Grayscale Investments also announced the launch of a new investment fund for AVAX, the “Grayscale Avalanche Trust,” which gives investors exposure to the networks.
On the same day, global asset management firm Franklin Templeton also expanded its Franklin Onchain US Government Money Fund to the Avalanche network. As reported by Cointelegraph, “The fund, which launched in 2021, allows institutional investors access to Franklin Templeton’s blockchain-integrated record-keeping system, Benji Investments
While the token unlocks and Grayscale Investments and Franklin Templeton news are not necessarily fundamentals-based developments directly related to AVAX, the boost in positive sentiment could be influencing investors' feelings about the altcoin’s price prospects
From the price action perspective, AVAX’s price surge is aligned with the Grayscale announcement and an uptick in liquidations.
