Avalanche (AVAX) has been making waves in the cryptocurrency market, surging 7% in value just days before its upcoming token unlock. This significant price movement has sparked interest among investors, who are eagerly awaiting the release of approximately 9.54 million tokens, valued at around $329 million. As the market prepares for this event, analysts are closely watching on-chain metrics and social media buzz to gauge the potential impact on AVAX's price trajectory.

Historically, token unlocks have led to increased volatility in cryptocurrency prices. However, Avalanche appears to be bucking this trend, with its market response maturing and investors viewing these events as less detrimental than in the past. With about 60% of its total supply already circulating, the upcoming unlock might not lead to drastic price fluctuations.

On-chain data from Santiment reveals a noticeable shift in investor sentiment and social media buzz surrounding AVAX. Despite a negative weighted sentiment, there has been a significant recovery, signaling a reduction in bearish outlook among market participants. Moreover, the increase in trading volume and social dominance suggests a growing interest that could propel AVAX's price further. If these trends continue, the price of AVAX could potentially reach new highs, possibly touching $43.50 before the unlock event.

As the date of the AVAX token unlock draws near, the market's eyes are fixed on how these new dynamics will play out. With favorable on-chain metrics and a stabilizing market response to token unlocks, AVAX could be setting the stage for a new phase of growth. Investors and traders should monitor these developments closely, as they could have significant implications for the asset's value and the broader cryptocurrency market.