Avalanche Price Rises After $1 Billion Treasury Plan
The Avalanche (AVAX) price rose 1% on Thursday. This follows a 2% gain the day before. The increase came after a $1 billion ecosystem treasury plan was announced. Technical data shows growing interest from traders and users.
$1 Billion Avalanche Ecosystem Treasury Plan
Avalanche Treasury Company (AVAT) announced a business deal worth over $675 million. They partnered with Mountain Lake Acquisition Corporation (MLAC), a Nasdaq-listed company. The deal includes $460 million in treasury assets. It creates a public financial vehicle for AVAX.
AVAT aims to own more than $1 billion in AVAX tokens. The Avalanche Foundation approved buying tokens at a discount. AVAT also has an 18-month priority on token sales. This plan shows strong confidence in the Avalanche ecosystem.
Data from CoinGlass shows AVAX Open Interest (OI) reached $1.62 billion on Thursday. This is up from $1.45 billion on Wednesday. The rise in derivatives trading signals a risk-on mood among investors.
Avalanche DEX Volume Hits Highest Level in Years
Avalanche’s monthly Decentralized Exchange (DEX) trading volume hit $17.432 billion in September. This is the highest DEX volume in almost three years. It points to growing liquidity and more users on the platform.
AVAX Price Moves Within Key Range
AVAX trades above $30 as of Thursday. It bounced off its 200-week Exponential Moving Average (EMA) at $29.08. The price is moving between the 50% and 61.8% Fibonacci retracement levels at $28.60 and $33.48.
This range is based on the price drop from $55.79 on December 4 to $14.66 on April 7. If AVAX closes above $33.48, it could rise toward $41.91.
Technical indicators show a bullish trend. The Relative Strength Index (RSI) is at 58 and rising. It still has room before reaching the overbought zone. The Moving Average Convergence Divergence (MACD) also shows increasing bullish momentum.
If AVAX falls below $28.60, it may test the 38.2% Fibonacci retracement level at $24.43.
