This summary text is fully AI-generated and may therefore contain errors or be incomplete.
The upcoming token unlock for AVAX, a popular cryptocurrency, could have a significant impact on its price. With 9.5 million tokens set to enter the market, valued at around $204 million, this increase in supply may lead to a decrease in the token’s value. The unlock will add 2.68% to the circulating supply, bringing the total unlocked supply to 57.68%. This inflation in supply poses a potential obstacle for price rallies.While previous unlock events have resulted in a small dip in price, suggesting that the market had already priced in the event, there are some differences this time. The token’s price has recently risen rapidly, which could prompt investors to sell and secure their gains. Additionally, data shows that a significant percentage of AVAX holders are currently in profit, reaching a 20-month high. This situation occurred previously in April 2022, followed by aggressive profit-taking and a substantial price drop.Considering these factors, it is possible that the AVAX price could maintain its momentum, but there is also a chance it could return to around $10 if a similar pattern repeats. The market will closely watch the impact of the token unlock on AVAX’s price and assess whether the current trend will continue or if a correction is imminent.