Following the announcement of the Avalanche Foundation’s token buyback agreement with Luna Foundation Guard (LFG), which is connected to the Terra blockchain, the price of the AVAX cryptocurrency has skyrocketed by 10%. This development has allowed the market value of AVAX to exceed $11.5 billion, approaching the $30 level.
According to recent statements, the Avalanche Foundation has committed to repurchase all AVAX tokens sold to Luna Foundation Guard in April 2022. However, this deal is awaiting approval from the Bankruptcy Court to go into effect. The announcement has attracted the attention of AVAX investors, triggering a price increase.
According to current market data, the price of AVAX has increased by 9.33% to $28.49. Technical analysis shows that AVAX has successfully broken out of the recent falling wedge formation. The Relative Strength Index (RSI) is around 49.8, while the Moving Average Convergence Divergence (MACD) indicator is giving a positive signal.
Expert analysts state that AVAX has significant growth potential after this breakout. Crypto analyst Crypto Winkle predicts that AVAX could rise above $30 if the uptrend continues. In addition, the adoption of the Avalanche blockchain by traditional financial institutions is among the factors supporting this increase.
The Avalanche Foundation’s buyback agreement with LFG will strengthen the infrastructure needed for the development of the ecosystem and increase investor confidence, which could positively impact AVAX’s future value growth.