After remaining in a downtrend for almost six months, AVAX price appears to be in the early stages of a trend reversal. On August 5, it was at $17.29, its lowest price in nine months. Over the past two weeks, the altcoin has reversed course, rising 45% to $25.25.
While AVAX’s flash crash below $18 was mirrored by most altcoins that also sold off heavily during the Bitcoin crash, 
BTCUSD Correction to $49,500 on August 18. AVAX has been lagging the overall market since reaching a high of $65 on March 18.
Positive news may be partly responsible for the recent surge in AVAX price. This week, AVAX investors took a closer look at the Avalanche token unlock schedule and discovered that the number of token unlock events will drop sharply after the end of 2024. Many investors believe that token unlocks create selling pressure and hinder the various types of long-term ecosystem development that support the token’s appreciation.
After 2024, only the #Avalanche Foundation will unlock tokens. All other unlocks will be carried out.
On-chain unlocks are much more transparent than random token sales of other foundations. #AVAX Foundation unlocks have fixed dates and are on-chain, they are predictable and anyone can schedule them. … pic.twitter.com/DtsJnH3ElC
On August 22, asset manager Grayscale Investments also announced the launch of a new investment fund for AVAX, the “Grayscale Avalanche Trust,” which will provide investors with access to the network’s growing ecosystem.
On the same day, global asset management firm Franklin Templeton also expanded its Franklin Onchain US Government Money Fund to the Avalanche network. As Cointelegraph reported, “Launched in 2021, the fund gives institutional investors access to Franklin Templeton’s blockchain-integrated recordkeeping system, Benji Investments.”
While the token release and news from Grayscale Investments and Franklin Templeton are not necessarily fundamental developments directly related to AVAX, the increase in positive sentiment could influence investors’ feelings about the altcoin’s price prospects.
Related: Franklin Templeton expands blockchain fund to Avalanche network
From a price trend perspective, AVAX’s price increase is in line with the Grayscale announcement and there was a surge in liquidations when the funding rate briefly turned positive.
It is important to watch for a continued increase in spot buying volumes, especially given that cryptocurrencies are known for having their prices driven by news events, partnership announcements, and mainnet upgrades. As shown below, this type of hopium and hype creation is a process that crypto influencers and industry personnel are well acquainted with.
3 years ago this week, Avalanche Rush was announced. It was the most exciting and innovative incentive program at the time.
To be continued? pic.twitter.com/FDWkQLb8P5
If spot buying volumes continue or there is a significant increase in margined long positions, AVAX could take advantage of liquidity above the $25-$27 resistance cluster (as shown by the volume profile and total order book) to reach prices in the $28-$33 range.
This article does not contain investment advice or a recommendation. Every investment and trading decision involves risk and readers should conduct their own research in making their decision.
