Key Notes
- AVAX broke out of a 213-day consolidation phase, surging 9% in the past day.
- Two US-based treasury companies are being planned to raise $1 billion for AVAX buyback.
- The news triggered a 100% rise in trading volume, with analysts eyeing a surge to $55.
Avalanche
AVAX
$28.80
24h volatility:
7.4%
Market cap:
$12.16 B
Vol. 24h:
$1.81 B
has recently broken out of a long 213-day consolidation phase. The breakout follows a Financial Times report, which claims that the Avalanche Foundation is in advanced discussions with investors to establish two US-based “digital asset treasury” companies.
According to the report, the entities aim to cumulatively raise $1 billion to purchase millions of AVAX tokens at a discount.
The first treasury, spearheaded by Hivemind Capital, is targeting $500 million through a Nasdaq-listed firm, with popular financier Anthony Scaramucci advising the initiative.
The second, backed by Dragonfly Capital, also plans to raise $500 million via a Special Purpose Acquisition Company (SPAC). This allows for quicker deployment of funds and potential mergers with other assets or companies.
Market watchers believe this $1 billion raise is similar to a buyback strategy, reducing circulating supply and fostering upward price momentum. Community members suggest that such a move could boost AVAX price, making it the next crypto to explode.
AVAX Price Reacts, $55 Ahead?
The news has already sparked a 100% surge in 24-hour trading volume, currently sitting at $1.93 billion. Analysts have speculated that AVAX could rally towards the $50 mark as the token already recorded a 9% daily gain on Thursday.
https://twitter.com/elliotrades/status/1965807049796944143
Popular crypto trader EllioTrades noted on X out that AVAX faces no major resistance until $55 from its current level. At the time of writing, the 16th largest cryptocurrency is trading near $28.70, around 45% below its yearly peak recorded last December.
On the daily AVAX price chart, the RSI is nearing the overbought threshold of 70. This suggests that buying pressure is strong, though a correction may follow if the market becomes overheated.
AVAX price chart with RSI and Bollinger Bands | Source: TradingView
Meanwhile, the Bollinger Bands are expanding, indicating a continuation of the current trend. A sustained move above the upper band at $28.22 could push the price towards $35–$40.
The middle band (20-day SMA) at $24.99 acts as support and failure to hold above this level could lead to a price drop to $22 or lower.a
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
Parth Dubey on LinkedIn
Source: https://www.coinspeaker.com/avalanche-seeks-raise-1b-crypto-reserves-avax-price/
