Avalanche Foundation Buys Back $60 Million in AVAX Tokens: Bull Rally Incoming?
Qadir AK14 Oct 20242 min read
With the crypto market on the upswing this October, Avalanche (AVAX) is gaining momentum.
The large-cap altcoin, valued at roughly $13.1 billion and averaging $415 million in daily trading volume, is currently testing a key support/resistance level near $30. In the second week of October, AVAX surged more than 7%, reaching around $29.5 during Monday’s early European trading session.
Here’s everything you need to know.
Avalanche Price Analysis
On the technical side, AVAX has successfully retested a major breakout while following a rising logarithmic trend. The daily chart shows a rebound from the 50-day Moving Average (MA), highlighting strong support at that level.
Additionally, the price action suggests a potential macro inverted head and shoulders (H&S) pattern, which is typically a bullish signal. This formation is supported by a rising divergence in the Relative Strength Index (RSI) on the weekly chart, indicating possible upward movement in the near future.
Understanding Avalanche’s Plan
In a step to support the AVAX community, the Avalanche Foundation recently announced plans to repurchase all AVAX tokens previously sold to the Luna Foundation Guard (LFG), which is nearing the end of its bankruptcy liquidation.
This repurchase involves 1.97 million AVAX tokens, worth nearly $60 million, and is aimed at easing potential selling pressure and stabilizing the token’s price.
Despite the positive impact of the token buyback, some investors are cautious about an upcoming event. On October 21, 2024, 700,000 AVAX tokens, valued at over $20 million, will be unlocked. This could introduce some short-term selling pressure, possibly affecting the current bullish outlook.
Network Growth
Founded in 2018, Avalanche has grown into a thriving Web3 ecosystem backed by prominent institutional investors. The network now includes 1,724 validators, who have staked about 247.6 million AVAX, representing 56.16% of the total supply.
As of this report, the Avalanche network has over $1 billion in total value locked (TVL) and a stablecoin market cap surpassing $2.39 billion. Leading DeFi protocols such as AAVE, GMX, Benqi, and LFJ are actively using the network, reinforcing Avalanche’s status in decentralized finance.
As we venture further into October, the stage is set for Avalanche to either solidify its position or face new challenges. Keep an eye on this promising altcoin!
