YEREVAN (CoinChapter.com) — On Dec. 18, Avalanche (AVAX) price corrected 10% to $39 in the previous 48 hours. Notably, the correction came after the token peaked at a 20-month high of $45 on Dec. 15, following an over 100% month-to-date surge. Will the correction continue ahead of the AVAX airdrop? Let’s see.
Avalanche AVAX Price Could Lose Another 10%
According to on-chain tracker DeFiLlama, Avalanche’s trading volumes have declined 70% since the yearly peak of Dec. 11 and stood at $137 million on Dec. 17.
If the interest in Avalanche trading fades further, AVAX price could drop another 10% to $35, a previous support/resistance. The daily chart’s relative strength index (RSI) backed the short-term bearish expectations, charting through ‘overbought’ territory above 80.
However, the upcoming Avalanche Airdrop could reignite interest in the altcoin. Here are more details.
Avalanche Unlock and Airdrop Coming
The Avalanche team announced the AVAX Airdrop on Dec. 18 but did not mention specific time limits. They also provided a step-by-step to get the airdrop.
The airdrop campaign from Avalanche $AVAX is exceptionally special as it supplies 500 USD along with governance tokens, offering participants a vote on prospective project decisions. […] It provides an chance to engage with a governance token initiative and play a part in the project’s progression.
read the announcement.
Additionally, according to the vesting schedule, Avalanche token unlock of 9.5 million AVAX, or 2.2% of the total supply, will commence in 2 days, on Dec. 21.
While AVAX airdrops and token unlocks serve different purposes and have distinct mechanisms, they both influence the circulating supply and market perception of a token, which can thereby impact its price and volatility. Avalanche schedules both the airdrops and unlocks regularly to raise validator incentives. Will they influence the AVAX price?
The previous events had an irregular effect on the price, confirming that overall market sentiment influenced AVAX more substantially. As of Dec. 18, Avalanche token copied Bitcoin’s correction trajectory, hinting that if BTC investors take profits, the price might follow suit with another 10% decline.
