Avalanche’s Smart Move Could Send AVAX to $50 Soon!
A recent decision by the Avalanche Foundation has caused a stir in the cryptocurrency market, with the price of AVAX surging by 10%. This move has caught the attention of investors who are now closely monitoring the situation. So, what exactly happened?
In April 2022, Avalanche sold a significant number of AVAX tokens to the Luna Foundation Guard (LFG). However, the foundation now wants those tokens back, pending approval from the bankruptcy court. Despite the uncertainty of the outcome, investors are showing a keen interest in this development. The official Avalanche Foundation Twitter handle shared the news, stating their negotiation to repurchase the tokens from LFG.
Initially, LFG purchased 1.97 million AVAX tokens to support their UST stablecoin. With LFG facing bankruptcy, Avalanche aims to prevent a messy liquidation of these tokens through the buyback, which could prove to be a significant win for them.
The current price of AVAX stands at $28.431, marking a 9.3% increase. The reduction in circulating tokens typically leads to price hikes, and many believe this could be the beginning of a larger surge. Technical indicators also support this notion, with AVAX breaking out of a falling wedge pattern, signaling a bullish trend. Analysts predict that if the price surpasses the $30 mark, it could potentially reach $50. The RSI and MACD indicators further indicate upward momentum.
In addition to the buyback news, Colombian neobank Littio recently migrated from Ethereum to Avalanche, hinting at a growing trust in the platform. This shift could pave the way for more financial institutions to adopt AVAX, painting a promising future for the cryptocurrency.
As the cryptocurrency market continues to evolve, the developments surrounding Avalanche and AVAX are worth keeping an eye on, as they could potentially lead to significant gains in the near future.
