AVAX, the crypto associated with the Avalanche blockchain, has experienced a remarkable 16% increase in value within just 48 hours. This surge follows the announcement that the Avalanche Foundation plans to buy back 1.97 million tokens previously sold to the Luna Foundation Guard (LFG) in April 2022. The deal is awaiting approval from a bankruptcy court.
After a minor dip on October 10, AVAX’s price rebounded from a support level of $25.04, leading to a strong upward trend. Currently, AVAX is trading at $28.13, having peaked at $29.01 earlier in the day.
This recent price movement indicates bullish sentiment among investors, who seem to be accumulating AVAX in anticipation of the court’s approval. Analysts predict that the repurchase will signal high demand for AVAX and could further boost its price and market capitalization, which has already seen a 7.82% increase in the last 24 hours.
The Avalanche Foundation has clarified that the repurchase aims to protect the LFG from potential violations of the original token agreement and to simplify the complexities associated with bankruptcy liquidation. Additionally, this move is expected to strengthen the Foundation’s capacity to foster the ongoing development of the Avalanche ecosystem.
With the recent price surge, AVAX has surpassed the critical support level of $28.00, indicating a shift towards a bullish trend. If this momentum continues, the next target for AVAX could be the resistance level of $30.86 established on September 27.
