AVAX gained 9% in a day after reports that the Avalanche Foundation is exploring a $1 billion fundraising effort to boost adoption.
Avalanche AVAX $20.85 24h volatility: 6.0% Market cap: $8.90 B Vol. 24h: $557.53 M 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.
$AVAX just broke out of a 213 Day Consolidation
Nothing but air until $50+
Onchain revenues about to explode, you know what that means pic.twitter.com/ooR34Tbpaq
— EllioTrades (@elliotrades) September 10, 2025
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
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