Market Conditions and Recent Price Movements
AVAX’s price drop below $18 mirrored the broader market trend, with many altcoins experiencing significant sell-offs during Bitcoin’s (BTC) correction to $49,500 on August 18. Since reaching a high of $65 on March 18, AVAX has lagged behind the market.
Factors Contributing to AVAX’s Recent Uptick
Several factors may be contributing to the recent bullish trend in AVAX:
- Token Unlock Schedule: AVAX investors have noted a sharp reduction in token unlock events after the end of 2024. Many believe that these unlocks create sell pressure, impacting long-term ecosystem development.
- Grayscale Investments: On August 22, Grayscale Investments launched the “Grayscale Avalanche Trust,” a new investment fund providing exposure to the Avalanche network.
- Franklin Templeton: Also on August 22, Franklin Templeton expanded its Franklin Onchain US Government Money Fund to the Avalanche network. This fund offers institutional investors access to Franklin Templeton’s blockchain-integrated record-keeping system.
Impact of Recent Developments
While these developments are not directly related to AVAX’s fundamentals, they have contributed to a boost in positive sentiment. AVAX’s recent price surge aligns with the Grayscale announcement and an uptick in liquidations, with its funding rate briefly turning positive.
It’s crucial to monitor spot buying volumes, as cryptocurrencies are often influenced by news events, partnership announcements, and mainnet upgrades. If buying volumes remain strong or if there is an increase in margined long positions, AVAX could break through the $25 to $27 resistance zone and target prices in the $28 to $33 range.
This article does not constitute investment advice or recommendations. Every investment and trading decision carries risk, and readers should conduct their own research before making any decisions.
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