The Avalanche Foundation has fully repurchased the 1.97 million AVAX currency to promote the Terra digital currency ecosystem. The Avalanche Foundation announced that the token buyback procedure was finished. The AVAX coin price showed massive buying pressure in the recent price, creating a solid foundation from the ongoing development.
LFG's Involvement with the AVAX Bulls
Do Kwon, the founder of Terraform Labs, created the LFG in 2022 to safeguard Terra's stablecoin. To stabilize UST, which was then worth $16.7 billion, LFG established retainers at the time by purchasing Bitcoin (BTCUSD) and other cryptocurrencies, involving a total of $100 million of AVAX.
In addition to the LFG acquisition, Terraform Labs exchanged $100 million LUNA currency for AVAX to "deliberately align ecosystem rewards."
However, Terra's crash came shortly after. By May 2022, UST had forfeited its dollar peg, which caused LUNA's price to plummet and the ecosystem of Terra as a whole to fall apart.
Analysts Opinion On Avalanche (AVAX)
With a 40% increase, Avalanche (AVAX) has reached an essential supply level that, if breached, could lead to a significant rally. As AVAX establishes itself as a major player in the market, investors and traders who understand the possibilities of Layer-1 blockchains have noticed the recent surge.
Top analyst and shareholder Kaleo is keeping a close eye on this development. He recently shared a technical assessment for AVAX with an upbeat price target of $420. As the prices of Ethereum and Bitcoin continue to rise, Kaleo's upbeat outlook is in line with the mood of the market as a whole.
Whether AVAX can overcome the supply level and maintain its positive trajectory will be determined in the coming days. A hostile higher move that solidifies Avalanche's position as a major player in the first-layer blockchain industry could come shortly as more attention turns to AVAX and other well-known altcoins.
AVAX Price Technical Analysis
In the daily chart of AVAXUSD, the recent price showed a strong bullish reversal, creating an opportunity for the upward continuation.
In the broader context, the recent price moved above the 200 day Simple Moving Average with a bullish V-shape recovery. It is a sign of a valid rebound, where the 50 day EMA is also below the current price. As both lines are below the current price, we may consider the market momentum as bullish.
Based on the current market outlook, a minor downside correction is possible, where the bullish order block is at the 26.86 to 22.35 zone. A valid bullish rebound from this zone could offer a high probable long opportunity. However, an immediate bullish continuation is possible from the 50 day EMA, depending on the price action.
On the bullish side, the near-term resistance is at the 41.74 level, which could be an immediate barrier before reaching the 54.24 resistance line.
On the bearish side, a Pump and Dump from the current peak with a daily candle below the 50 day EMA could lower the price below the 17.00 area.
