Avalanche Seeks to Raise $1B for Crypto Reserves, AVAX Price Soars

Core Insights - Avalanche has emerged from a 213-day consolidation phase, with plans to raise $1 billion through two US-based digital asset treasury companies [1] - The first treasury, led by Hivemind Capital, aims to raise $500 million, while the second, backed by Dragonfly Capital, also targets $500 million via a SPAC [2] - Market analysts view this fundraising as a buyback strategy that could reduce circulating supply and increase AVAX price momentum [3] Fundraising Details - Hivemind Capital's treasury is advised by financier Anthony Scaramucci and is targeting $500 million through a Nasdaq-listed firm [2] - Dragonfly Capital's treasury also plans to raise $500 million using a SPAC, facilitating quicker fund deployment and potential mergers [2] Market Reaction - The announcement has led to a 100% increase in 24-hour trading volume, reaching $1.93 billion, with AVAX experiencing a 9% daily gain [4] - Analysts speculate that AVAX could rise towards the $50 mark, with current trading around $28.70, approximately 45% below its yearly peak [5] Technical Analysis - The RSI for AVAX is nearing the overbought threshold of 70, indicating strong buying pressure but potential for a correction [5] - Bollinger Bands are expanding, suggesting a continuation of the current trend, with a sustained move above $28.22 potentially pushing prices towards $35–$40 [6] - The 20-day SMA at $24.99 serves as support, with a failure to hold above this level possibly leading to a drop to $22 or lower [6]