The Avalanche network is in the spotlight amid price rallies and proposed AVAX repurchase.
Avalanche AVAX $9.22 24h volatility: 3.6% Market cap: $3.98 B Vol. 24h: $259.89 M price is gaining significant traction, consistently registering gains these past few days. The resurgence coincides with a broader crypto market rebound, underscoring the narrative of the bullish October rally. The cryptocurrency trades at $29.33, a 5.93% increase in the last 24 hours. Per the current outlook, Avalanche is poised to retest a crucial resistance level at $30.
Market Outlook for AVAX
Its market capitalization has moved to $11.92 billion, while its trading volume is resting at $385.92 million, corresponding up 21.1% in 24 hours. Only a few weeks ago, this metric flew as high as $445 million, sparking discussions about an imminent price surge. Shortly after, the AVAX price jumped by 17.5% to hit $27.75.
CoinMarketCap data also shows that AVAX recorded more than a 7% increase in the second week of October. Judging from a technical standpoint, the asset’s price has successfully printed a macro breakout and respected a rising logarithmic trend. The daily time frame provides insights that suggest that AVAX’s price successfully rebounded from the 50-Moving Average (MA).
Due to this action, AVAX price has potentially formed a macro inverted head and shoulders (H&S) pattern. This is in addition to a weekly rising divergence of the Relative Strength Index (RSI). The position of its Moving Average Convergence Divergence (MACD) and RSI signals a bullish sentiment.
Crypto analyst Crypto Winkle has suggested a potential price jump for AVAX if the bulls manage to break the crucial resistance past $30. CoinCodex analysts also believe that AVAX could reach $36.63 by October 2024. This prediction is approximately 25% away from the current price of AVAX.
Beyond this, more market analysts are already projecting the possibility of AVAX reaching $50.
Avalanche Foundation and Token Repurchase Move
Apart from the traditionally bullish October sentiment, other key events might trigger the projected price surge. Recently, the Avalanche Foundation agreed to repurchase all AVAX tokens sold to the Luna Foundation Guard (LFG) in April 2022.
Back in 2022, LFG held 1.97 million AVAX tokens worth a staggering $60 million. It is worth noting that the Luna Foundation made this purchase to serve as a reserve asset in its treasury and boost the strength of its UST stablecoin. With the recent push, Avalanche Foundation is trying to avoid a breach of contract from LFG.
The pressure from its bankruptcy proceedings may cause the Luna Foundation to liquidate and dump the AVAX tokens in its portfolio. Avalanche Foundation wants something other than this eventuality with a repurchase bid lodged with the court to the 1.97 million AVAX. If it successfully repurchases these holdings, it might significantly impact the circulating supply of AVAX.
Shrinking the token’s circulating supply might help the AVAX price sustain its bullish momentum. In the meantime, the Avalanche Foundation is waiting for the bankruptcy court to approve the proposed AVAX token repurchase action.
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