Avalanche Seeks to Raise $1B for Crypto Reserves, AVAX Price Soars

Avalanche AVAX $28.86 24h volatility: 8.2% Market cap: $12.18 B Vol. 24h: $1.80 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.

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

next

The post Avalanche Seeks to Raise $1B for Crypto Reserves, AVAX Price Soars appeared first on Coinspeaker.