Avalanche (AVAX) Surges 7% as Institutional Treasury Wave Drives Momentum Above $34
Growing institutional adoption and upcoming ETF prospects fuel bullish sentiment for the Layer-1 blockchain and Avalanche (AVAX) token
Quick overview
- Avalanche (AVAX) has gained institutional attention, trading above $34 with a 7% increase in the last 24 hours.
- AgriFORCE has rebranded to 'AVAX One' and plans to raise over $700 million in AVAX tokens, leading to a 200% surge in their shares.
- Avalanche is also seeing regulatory support with Grayscale's ETF filing, which could enhance accessibility and attract more investment.
- Technical analysis suggests AVAX may reach a price target of $42–45 in the coming weeks, driven by strong institutional interest and a solid support zone.
Avalanche (AVAX) is getting more attention from institutions as it trades above $34, which is a 7% increase in the last 24 hours. The recent surge is due to AgriFORCE Growing Systems’ sudden shift to become an AVAX-focused digital asset treasury company. They changed their name to “AVAX One” and expect to collect over $700 million in tokens.
Avalanche Corporate Treasury Strategy Sparks Market Rally
The change made AgriFORCE shares go up more than 200% at the start of trading on Monday. The business wants to raise $550 million in cash through a $300 million PIPE offering and $250 million in equity-linked instruments. Hivemind Capital is in charge of this project, which has the support of more than 50 institutional investors, such as Galaxy Digital, Kraken, and ParaFi. This shows that institutions are becoming more confident in Avalanche’s long-term future.
AVAX/USD Technical Analysis Points to Continued Upside Potential
From a technical point of view, AVAX has shown that it can stay strong after breaking through the important $30 resistance level. The token has gone up about 24% in the last two weeks, building a strong base above the $32–34 support zone. The amount of trading has gone up a lot, which suggests that institutions are buying more in line with the latest treasury statements.
The way the price is moving right now shows that AVAX is testing the top of its recent trading range. The next big level of resistance looks to be around $38–40. The fact that the token has stayed over $34 even when the market has been volatile shows that there is strong demand, especially from institutions that want to get involved in Avalanche’s burgeoning ecosystem.
Avalanche ETF Developments Create Additional Catalysts
Avalanche is getting more and more regulatory support. For example, Grayscale has filed to turn its current Avalanche Trust into a spot ETF that would trade on Nasdaq under the AVAX ticker. The proposed ETF has a new staking feature that lets you stake up to 85% of your AVAX tokens to earn more income.
This news comes after VanEck’s earlier filing for an ETF and is a big step forward for altcoin ETFs that aren’t Bitcoin or Ethereum. Analysts say there is a 90% likelihood of approval and a possible launch date of March 2025. The ETF may bring in a lot of money and make AVAX more accessible to the general public.
Ecosystem Growth Drives Fundamental Value
Avalanche’s technical infrastructure keeps inviting businesses to use it. For example, the U.S. Department of Commerce has decided to release GDP statistics on several blockchains, including Avalanche. The Web3 gaming side of the network has been very strong, with MapleStory Universe pushing the chain to more than 1 million daily transactions several times in the past few months.
Avalanche has been the leader in transaction growth, with over 11.9 million transactions processed and over 66% weekly growth in late August. This is because the blockchain focuses on decentralized finance (DeFi) and institutional-grade applications. This behavior shows that it has genuine value beyond just trading for fun.
Avalanche (AVAX) Price Prediction and Risk Assessment
AVAX looks like it will keep going up in the near future based on current technical patterns and advancements in the institutions. The token’s effective defense of the $32–34 support zone, along with growing institutional interest and the possibility of ETF certification, points to a price target of $42–45 in the next few weeks.
Investors should keep in mind, though, that AVAX is still well below its all-time high of $144.96 from November 2021. This means that there is a lot of space for both growth and volatility. Treasury tactics like AVAX One’s $700 million accumulation plan could create steady purchasing pressure, and the current yield of about 6.7% APY gives long-term holders the chance to earn more money.
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