A big decision by Avalanche Foundation has sparked this rise and the price of AVAX has surged by 10%. Investors are jumping in and keeping a close watch. So, what happened? Let’s break it down.
Smart Move with Luna Foundation Guard (LFG)
Back in April 2022, Avalanche sold a large number of AVAX tokens to the Luna Foundation Guard (LFG). Now, they want those tokens back. The move is not final yet, as it needs the approval of the bankruptcy court. But that hasn’t stopped investors from jumping in. Avalanche Foundation shared this news from its official X handle.
LFG initially bought 1.97 million AVAX tokens to support their UST stablecoin. However, LFG is now facing bankruptcy. Avalanche aims to avoid a messy liquidation of these tokens, and the buyback would be a big win for them if it goes through.
Is AVAX Set for Even Bigger Gains?
The price of AVAX currently sits at $28.431, up 9.3%. The reason? When fewer tokens are in circulation, prices usually rise. That’s exactly what’s happening here. Some believe this could be the start of an even bigger surge.
Technical indicators are supporting this too. AVAX is breaking out of a falling wedge pattern, which is a strong bullish signal. If the price can break past the $30 mark, some analysts think it might go straight to $50. The RSI (Relative Strength Index) stands at 59, and the MACD (Moving Average Convergence Divergence) is at 0.379, signaling upward momentum.
What’s Next for Avalanche?
The buyback isn’t the only exciting news for Avalanche. Colombian neobank Littio just made the switch from Ethereum to Avalanche. This could be a sign of things to come as more companies start trusting Avalanche. The future looks bright for AVAX, with more financial players potentially hopping on board.
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