As a seasoned analyst with over two decades of experience in the volatile world of crypto, I must admit that I’ve seen more than a few rollercoasters in my time. However, the current trajectory of Avalanche (AVAX) is one that has caught my attention. The consistent gains and bullish outlook have me intrigued, particularly given its recent rebound from the 50-Moving Average (MA).
Avalanche (AVAX) price has been experiencing impressive growth recently, marking substantial gains over the past few days. This upward trend aligns with the broader crypto market recovery, further emphasizing the optimistic October rally narrative. Currently, AVAX is trading at approximately $29.31, representing a 5.93% increase within the last 24 hours. As things stand now, Avalanche seems to be preparing to challenge a crucial resistance level around $30.
Market Outlook for AVAX
The market capitalization now stands at approximately $11.92 billion, with a trading volume of around $385.92 million – an increase of about 21.1% over the past 24 hours. Just a few weeks ago, this figure peaked at $445 million, igniting debates about a potential price spike. Following this, the AVAX price surged by around 17.5%, reaching $27.75.
Data from CoinMarketCap indicates that AVAX experienced over a 7% growth during the second week of October. From a technical perspective, it appears that the asset’s price has managed to make a significant breakout on a larger scale and has maintained an upward logarithmic trend. Examining the daily chart, it seems that AVAX’s price bounced back effectively from its 50-Moving Average (MA).
Based on this action, it appears that the price of AVAX could be shaping an upside-down head and shoulders (H&S) pattern in the larger market context. Furthermore, there’s also a growing disconnect between the price and the Relative Strength Index (RSI) over the weekly period, which is known as a rising divergence. Additionally, the placement of its Moving Average Convergence Divergence (MACD) and RSI suggest a positive or bullish outlook.
According to crypto expert Crypto Winkle, there’s a possibility that the price of AVAX might increase significantly if buyers successfully surpass the significant barrier at $30. Experts from CoinCodex also anticipate that AVAX could potentially reach $36.63 by October 2024, which is about 25% above its current value.
Beyond this, more market analysts are already projecting the possibility of AVAX reaching $50.
Avalanche Foundation and Token Repurchase Move
Besides the usual optimistic feelings associated with October, other significant occurrences could fuel the anticipated price increase. Notably, the Avalanche Foundation has recently decided to buy back all AVAX tokens that they had sold to the Luna Foundation Guard (LFG) in April 2022.
In the year 2022, LFG owned approximately 1.97 million AVAX tokens, valued at an impressive $60 million. It’s important to mention that this acquisition by the Luna Foundation was made to bolster their treasury and enhance the robustness of their UST stablecoin. Currently, the Avalanche Foundation is taking steps to prevent any potential breach of contract with LFG.
Due to its ongoing bankruptcy process, there’s a possibility that the Luna Foundation could sell off its AVAX tokens from its portfolio. The Avalanche Foundation is trying to prevent this situation by placing a bid with the court to buy back the 1.97 million AVAX they hold. If successful, this purchase could significantly decrease the total amount of AVAX in circulation.
Reducing the number of AVAX tokens in circulation could support the ongoing upward trend of the AVAX price. Concurrently, the Avalanche Foundation anticipates the approval from the bankruptcy court regarding their proposed plan to buy back AVAX tokens.
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2024-10-14 14:07