Avalanche (AVAX) price has been unable to reclaim the $20.00 support level after falling through it in the recent correction. The altcoin is now trading well below that key mark despite a noticeable decline in selling pressure. 

However, bullish momentum has not been strong enough to counter prevailing bearish cues.

Avalanche Investors Are Not Selling

Analyzing the active address profitability reveals that less than 3% of current participants are in profit. This data highlights a crucial detail: most AVAX holders are unwilling to sell at a loss. Instead, they appear to be HODLing in anticipation of a recovery. This lack of selling is a bullish indicator.

The patience shown by investors during this downturn could help Avalanche establish a stronger base once broader market conditions stabilize. As fewer holders are actively selling, downward pressure on AVAX’s price is reduced. Given the right market catalysts, this opens a window for the altcoin to bounce back.

Despite low selling activity, the technical indicators continue to signal weakness. The Relative Strength Index (RSI) has dropped back into the bearish zone after a brief recovery attempt. This suggests a lack of buying pressure and continued uncertainty among investors.

Market support has been lacking for AVAX in recent sessions, preventing a meaningful rebound. The altcoin is facing consistent resistance and has failed to generate strong upward momentum.

The RSI trend reinforces that the macro environment is still leaning bearish, keeping Avalanche subdued.

AVAX Price Is Vulnerable

Avalanche is currently priced at $17.19, marking a 25% decline over the past two weeks. The sharp drop came after AVAX failed to break through the $22.87 resistance level. This rejection led to the current consolidation below $20.00, with bulls unable to reverse the trend.

Given the existing market cues, Avalanche may struggle to reclaim $18.27 as a support level. If the altcoin fails to secure this level, it risks dropping further to $16.25. This would deepen investor losses and delay any chances of recovery.

On the upside, a key shift would occur if AVAX can flip $19.86 into support. This would suggest strengthening bullish sentiment and open the door for a rally toward $22.87. Reclaiming this level could allow Avalanche to recover some recent losses and restore investor confidence.

TRON founder Justin Sun is intensifying his accusations against First Digital Trust (FDT), the issuer of the FDUSD stablecoin, who he claims embezzled $500 million of its clients’ funds.

In an April 5 post on X, Sun compared FDT to the now-defunct FTX exchange, claiming the FDT case is “ten times worse.” FTX filed for bankruptcy in November 2022 after a bank run revealed an $8 billion shortfall in its assets.

Justin Sun Compares First Digital Trust to FTX

Sun argued that while FTX misused user funds, the exchange at least maintained an internal system that portrayed the activity as pledged loans.

He explained that FTX used assets like FTT, SRM, and MAPS tokens as collateral in transactions that, on the surface, had some structure. In contrast, Sun claims First Digital Trust outright stole funds without user consent or any internal pledge mechanism.

“FDT simply siphoned off $456m from TUSD’s custodial funds without client authorization or knowledge, and booked as loans to a dubious third party Dubai company without any collaterals,” Sun claimed.

The Tron founder further asserted that the now-convicted FTX founder Sam Bankman-Fried (SBF) indeed misused funds. However, Sun noted much of that capital went into investments in reputable firms such as Robinhood and AI company Anthropic.

On the other hand, Sun alleged that FDT diverted user assets into private entities for personal gain without any meaningful investment.

Sun also took aim at FDT CEO Vincent Chok Zhuo, criticizing his apparent indifference following the exposure of the alleged misconduct.

According to him, Chok has shown no intention of taking responsibility. This contrasts with SBF, who took steps to recover user assets and cooperated with authorities.

“Vincent Chok has acted deceptively and maliciously, pretending nothing happened when exposed,” Sun stated.

Considering this development, the TRON founder urged Hong Kong authorities to take swift action. He called for a response similar to that of US regulators during the FTX collapse.

Sun emphasized that Hong Kong’s reputation as a global financial hub is at risk and called for immediate enforcement to prevent further damage.

“Hong Kong must act like its US counterparts—swiftly, decisively, and effectively. We cannot allow the fraudsters continue its pyramid scheme against the public,” the crypto entrepreneur concluded.

To support investigations, Sun has launched a $50 million bounty program aimed at exposing the alleged misconduct. He also met with Hong Kong lawmaker Johnny Wu to discuss potential regulatory action.

Token unlocks play a pivotal role in the crypto market, impacting liquidity, price volatility, and investor sentiment. They are events in crypto where locked coins or tokens are released and become available for trading in the open market.

This week, three major projects—Axie Infinity (AXS), Jito Labs (JTO), and Xave (XAV)—will release previously locked tokens into circulation. Here’s what you need to know and watch for.

1. Axie Infinity (AXS)

• Unlock Date: April 12
• Number of Tokens to be Unlocked: 10.72 Million AXS (3.97% of Total Supply)
• Current Circulating Supply: 160.159 Million AXS
• Total supply: 270 Million AXS

Axie Infinity is a blockchain-based game featuring digital creatures called Axies, often compared to Pokémon. This pet-centric game combines elements of blockchain, NFTs, and ERC-20 tokens, offering players the chance to collect, battle, and trade unique creatures in a virtual world.

The April 12 unlock will consist of 10.72 million AXS tokens valued at about $29 million. Axie Infinity will award the majority of these tokens for staking rewards and for the team.



2. Jito Labs (JTO)

• Unlock Date: April 7
• Number of Tokens to be Unlocked: 11.31 Million JTO (1.13% of Total Supply)
• Current Circulating Supply: 313.37 Million JTO
• Total supply: 1 Billion JTO

Jito is a liquid staking service on Solana that distributes MEV rewards to holders. On April 7, Jito will unlock 11.3 million tokens which is currently worth around $20 million.

The project will allocate the majority of the unlocked tokens for ecosystem development, core contributors, and community growth. Additionally, it will allocate 10% of the tokens for airdrops.



3. Xave (XAV)

• Unlock Date: April 11
• Number of Tokens to be Unlocked: 313.29 Million XAV (3.13% of Total Supply)
• Total supply: 10 Billion XAV

Xave is a DeFi platform that focus on decentralized foreign exchange (FX) markets. It enhances stablecoin liquidity through an automated market maker (AMM) model.

On April 11, the network will unlock over 313 million XAV tokens, which constitutes just over 3% of the total supply. Xave will largely focus distribution to the team, investors, and treasury.



Other prominent token unlocks that investors can look out for this week include Delysium (AGI), Parcl (PRCL) and Circular Protocol (CIRX).

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.