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From the past to the present, many projects have been described as an Ethereum killer, but after realizing they could not achieve this, they failed to make the expected impact. Perhaps the two projects that have been sustaining this claim for a long time are none other than Avalanche (AVAX) and Solana (SOL). So, how are things going on the AVAX side, which recently hosted a multimillion-dollar token unlock?
Comments on Avalanche (AVAX)
Last month saw a 9% increase in value for Avalanche, suggesting that the situation might not be as bad as it seems. However, it would be useful to say that the short-term outlook is not very promising, and this situation could be a significant obstacle to maintaining gains for some time.
Looking at the short-term trend, AVAX has experienced a loss of about 13% over the past seven days and continues its downward trend. On the other hand, a 22% drop in trading volume in the last 24 hours on the AVAX side could also indicate a decrease in investor interest.
There is not much time left for the unlocking of the $365 million worth of tokens on the Avalanche side, which we mentioned in recent days and was thought to create a significant impact.
The number of people who think the major impact will be negative is not negligible, and the reason for this is attributed to millions of AVAX entering circulation. The supply entering circulation could potentially create a trend towards a price drop.
The recent decline is thought to be related to the supply in circulation being excessive compared to demand, and indeed, this could be one of the main reasons for AVAX’s recent drop.
Current Status of Avalanche (AVAX)
Looking at the performance of AVAX in terms of price last year, it would not be wrong to say that the potential for a new rise is always possible.
Although it started to decline with the first days of the new year, the losses were recovered by mid-February. For a new rise in the AVAX price, the $37 support level must be maintained.
Avalanche was above the $40 level last Monday, but then experienced a decline and is trading at $36.71, below the mentioned $37 level, at the time of writing.
However, if the downtrend in Bitcoin (BTC) and the broader cryptocurrency market continues, this price movement could affect AVAX and push the price below the $35 level.
