Avalanche Aims to Raise $1 Billion for Digital Asset Treasuries

Avalanche (#AVAX) has exited a 213-day consolidation phase following reports of advanced discussions to establish two US-based “digital asset treasury” companies. Key points include:

The Avalanche Foundation aims to raise $1 billion to purchase AVAX tokens at a discount.
The first treasury, led by Hivemind Capital, seeks $500 million through a Nasdaq-listed firm with Anthony Scaramucci's advisory.
The second treasury, backed by Dragonfly Capital, also targets $500 million via a SPAC for rapid fund deployment and potential mergers.
This initiative is viewed as a buyback strategy that could decrease circulating supply and increase AVAX price.

In response to the news:

24-hour trading volume surged by 100% to $1.93 billion.
AVAX is currently trading near $28.70, approximately 45% below its yearly peak.
Analysts predict a possible rise towards $50, with no major resistance until $55.
The daily RSI approaches the overbought threshold of 70, indicating strong buying pressure but potential for a correction.
Bollinger Bands suggest trend continuation; a move above $28.22 may push prices toward $35–$40, while support exists at $24.99.

AVAX price chart with RSI and Bollinger Bands | Source: TradingView