Franklin

bullish

when

Avalanche

After spending nearly six months in a downtrend, AVAX price looks to be in the early stages of a trend reversal. On Aug. 5, it traded at $17.29, its lowest price in nine months. Over the past two weeks, the altcoin has reversed course with a 45% gain to $25.25.&nbsp;
 While AVAX’s flash crash under $18 was mirrored by most altcoins which also sharply sold off during Bitcoin’s (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow" target="null" text="null">BTC</a>) Aug. 18 correction to $49,500, <a data-ct-non-breakable="null" href="https://cointelegraph.com/avalanche-price-index" rel="noopener noreferrer nofollow" target="null" text="null">AVAX</a> has been a laggard versus the wider market since topping out at $65 on March. 18.&nbsp;
 Positive news could be partially responsible for the recent uptick in the AVAX price. This week, AVAX investors zoomed in on the Avalanche token unlock schedule and noted that a sharp reduction in the number of token unlock events occurs after the end of 2024. Many investors believe that token unlocks generate sell pressure and deter the various types of long-term ecosystem development that support value accretion to the token.&nbsp;
<blockquote class="twitter-tweet">
 After 2024 only <a href="https://twitter.com/hashtag/Avalanche?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Avalanche</a> Foundation will unlock tokens. All other unlocks will be done. On-chain unlocks are much more transparent than other foundations random token sales<a href="https://twitter.com/hashtag/AVAX?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#AVAX</a> Foundation unlocks have set dates and is on-chain, it's predictable and everyone can plan for it.… <a href="https://t.co/DtsJnH3ElC" rel="noopener noreferrer nofollow">pic.twitter.com/DtsJnH3ElC</a>— REKTBuildr 🔺🔺🔺 (@rektbuildr) <a href="https://twitter.com/rektbuildr/status/1760480859931427162?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">February 22, 2024</a>
</blockquote>
On Aug. 22, asset manager Grayscale Investments also announced the launch of a new investment fund for AVAX, the “<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/grayscale-launches-investment-fund-avax-token" rel="noopener noreferrer nofollow" target="null" text="null">Grayscale Avalanche Trust</a>,” which gives investors exposure to the networks’ growing ecosystem.&nbsp;
 On the same day, global asset management firm Franklin Templeton also expanded its Franklin Onchain US Government Money Fund to the Avalanche network. As reported by Cointelegraph, “The fund, which launched in 2021, allows institutional investors access to Franklin Templeton’s blockchain-integrated record-keeping system, Benji Investments.”
 While the token unlocks and Grayscale Investments and Franklin Templeton news are not necessarily fundamentals-based developments directly related to AVAX, the boost in positive sentiment could be influencing investors' feelings about the altcoin’s price prospects.&nbsp;
 Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/franklin-templeton-onchain-us-money-fund-avalanche-expansion" rel="noopener noreferrer nofollow" target="null" text="null">Franklin Templeton expands blockchain fund to Avalanche network</a>
 From the price action perspective, AVAX’s price surge is aligned with the Grayscale announcement and an uptick in liquidations occurred as its funding rate briefly turned positive.&nbsp;
<figure><img alt="Is it time for Avalanche (AVAX) price to turn bullish?" name="" src="https://s3.cointelegraph.com/uploads/2024-08/Screenshot%202024-08-22%20at%202.27.14%E2%80%AFPM">
 <figcaption style="text-align: center;">
 AVAX 24-hour volume and liquidations. Source: Coinglass
 </figcaption>
</figure>
What is important to watch for is a sustained uptick in spot buying volumes, especially given the fact that cryptocurrencies are notoriously 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 crypto influencers and industry personnel are well familiar with.&nbsp;
<blockquote class="twitter-tweet">
 This week, 3 years ago, Avalanche Rush was announced. It was the most exciting and innovative incentive programs at the time. Sequel? <a href="https://t.co/FDWkQLb8P5" rel="noopener noreferrer nofollow">pic.twitter.com/FDWkQLb8P5</a>— Luigi D'Onorio DeMeo 🔺 (@luigidemeo) <a href="https://twitter.com/luigidemeo/status/1826216493358444798?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 21, 2024</a>
</blockquote>
 If spot buying volumes sustain or if there’s a notable increase in margined long positions, AVAX could tap into the topside liquidity above the $25 to $27 resistance cluster (as shown by the volume profile and aggregate order book) to chase prices in the $28 to $33 range.
<figure><img alt="Is it time for Avalanche (AVAX) price to turn bullish?" name="" src="https://s3.cointelegraph.com/uploads/2024-08/AVAXUSDT_2024-08-22_14-59-22">
 <figcaption style="text-align: center;">
 AVAX/USDT, 1-day chart. Source: TRDR.io
 </figcaption>
</figure>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Is it time for Avalanche (AVAX) price to turn bullish?

Cointelegraph

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