9.54 Million AVAX Tokens to Unlock on August 20

Avalanche (AVAX) is approaching a major event with the scheduled token unlock of 9.54 million tokens on August 20. This event holds the potential to significantly impact AVAX's price volatility. The article examines the current market state and the sentiment divergence among different stakeholder groups.

Upcoming Token Unlock

The scheduled release of 9.54 million tokens, valued at approximately $251 million, may lead to substantial price fluctuations in AVAX. Market participants are closely monitoring this event, anticipating its impact on the token's value.

Divergence in Holder and Trader Sentiments

On-chain analysis highlights a significant divergence in sentiment between large holders (whales) and the derivatives market. Santiment data indicates a negative funding rate for AVAX, suggesting a bearish outlook among futures traders. Conversely, IntoTheBlock’s Large Holders Netflow metric has surged by 33.66% over the past week, indicating major accumulation by AVAX’s largest stakeholders. This dynamic, with conflicting forces at play, could amplify market volatility.

Technical Analysis of AVAX

From a technical standpoint, AVAX’s price action is consolidating around $21.27. The cryptocurrency briefly fell below the psychologically important $20 level on August 8 but has since stabilized within a narrow range. The MACD indicator currently signals a bearish trend, suggesting that a significant breakout might face challenges in the near term. The Fibonacci retracement tool provides key support and resistance levels, indicating that AVAX may continue to oscillate between a swing low of $20.43 and a swing high of $22.79, reflecting market indecision.

The upcoming Avalanche (AVAX) token unlock on August 20 could trigger significant market volatility. While whale activity indicates accumulation, the negative funding rate among futures traders suggests bearish sentiment. Technical analysis points to continued price oscillation within a narrow range.