- Avalanche crypto price continued its sell-off last week.
- The network will unlock more AVAX tokens this week.
- Avalanche has seen the total value locked in its DeFi ecosystem slip.
Avalanche price will be in the spotlight this week as the crypto volatility returns and as the developers unlock more tokens. AVAX dropped to a low of $9.93 on Friday as the crypto sell-off gained steam. That price was its lowest level since January this year.
AVAX token unlocks
One of the top cryptocurrency news this week will be an unlock event for Avalanche, one of the leading chains in the industry. Developers will unlock 9.5 million tokens on Friday. These tokens will be worth more than $102.57 million or ~2%.
According to TokenUnlocks, the vesting schedule for Avalanche will see the developers unlock tokens until October 8. This means that existing AVAX investors will continue going through dilution for quite some time.
Data shows that Avalanche has already released over 84 million tokens worth over $905 million this year This is a substantial figure since Avalanche has a market cap of over $3.5 billion.
Read more: How to buy Avalanche.
This week’s tokens will go to strategic partners, foundation, team,and airdrop. Most of them will go to the team, which will receive 4.50 million tokens. Strategic partners will receive tokens worth over $24 million.
The upcoming token unlock comes at a difficult time for Avalanche and other cryptocurrencies. Most coins, including Bitcoin and Ethereum have plunged to their lowest level in months.
Avalanche is also going through substantial challenges as activity in the network wanes. For example, the total value locked (TVL) in its DeFi ecosystem has dropped to $1.56 billion, making it the 5th biggest platform in the industry. At its peak, it was the second-biggest platform after Binance.
Avalanche is battling competition from new layer-2 platforms like Optimism, Arbitrum, and Base. At the same time, some of its core dApps like GMX and Trader Joe have expanded to other networks like Ethereum and Arbitrum.
Avalanche price forecast
The daily chart shows that the AVAX prce formed a triple-top pattern at $21.55 earlier this year. In price action analysis, this pattern is usually a bearish sign. The token has already moved below the neckline of this pattern at $13.95.
Avalanche remains below the 50-day and 100-day moving averages. Most recently, it has dropped below the key support level at $10.63, the lowest level on June 10th. This means it has invalidated the double-bottom pattern that was forming.
Therefore, Avalanche price will likely continue falling as sellers target the key support at $9. A move above the resistance at $12 will point to more upside.
