AVAX, the primary cryptocurrency of the Avalanche blockchain ecosystem, has experienced a significant surge of 16% within a span of 48 hours. This surge comes as the Avalanche Foundation announces its intention to repurchase the 1.97 million AVAX tokens it sold to the Luna Foundation Guard in April 2022. The deal has been agreed upon by both parties and now awaits approval from the bankruptcy court.
Interestingly, the price of AVAX began to reverse from a small pullback a day before the announcement of the agreement, indicating a bullish sentiment in the market. The token’s value rebounded from support at $25.04 and embarked on a steady rally, with considerable momentum. At the time of writing, AVAX is trading at $28.13, having reached a high of $29.01 earlier in the day.
Experts in the crypto industry believe that the repurchase of 1.97 million AVAX tokens will fuel further demand for AVAX and inject additional bullish momentum into its price and market capitalization. CoinmarketCap data has already shown a 7.82% increase in AVAX’s market capitalization over the past 24 hours.
The Avalanche Foundation has stated that the repurchase is intended to protect the Luna Foundation Guard from violating the original agreement’s restrictions on token use and shield them from the complexities of a bankruptcy trustee liquidation. Moreover, the Foundation believes that this exercise will strengthen its ability to support the growth and development of the Avalanche ecosystem.
With the recent surge, AVAX has broken above the significant support level at $28.00, shifting its technical outlook towards a potentially bullish trend. If this breakout is confirmed, it could pave the way for further price increases, with the next target being the resistance level at $30.86 established on September 27.
It is important to note that the information provided in this article is for informational and educational purposes only, and it does not serve as financial advice. Readers are advised to exercise caution and seek professional guidance when making any investment decisions.