Avalanche Price Prediction: AVAX Soars 8% As Avalanche Foundation Eyes $1B Funding For AVAX Treasury Firms

The Avalanche price soared 8% to trade at $29.08 as of 6:01 a.m. EST on news that the Avalanche Foundation aims to raise $1 billion to create two crypto treasury companies.

The first project will be spearheaded by Hivemind Capital Partners, with the hope of raising $500 million in an unidentified Nasdaq-listed company, to complete the deal by the end of the month.

The second treasury initiative is led by Dragonfly Capital, a global investment firm that specializes in blockchain, digital assets, and decentralized finance (DeFi).

This project will be organized as a Special Purpose Acquisition Company (SPAC). Dragonfly will also have the goal of raising $500 million.

Avalanche Price Breaks Key Resistance

The AVAX price has been showing strong bullish momentum as it continues its upward trajectory.

After finding a bottom of around $14.66 earlier this year, the Avalanche price has been climbing steadily and is now trading around $29.08.

On the daily chart, AVAX has successfully broken above both the 50-day Simple Moving Average (SMA) at $24.15 and the 200-day SMA at $21.44.

This crossover signals a shift in market sentiment from bearish to bullish, with the moving averages now providing potential support levels on pullbacks.

The Fibonacci retracement levels highlight $20.01 (0.618 retracement) and $17.96 (0.786 retracement) as key support zones should a correction occur.

AVAX Price Bulls Eye Higher Fibonacci Targets

Looking at the indicators, the Relative Strength Index (RSI) is currently at 67.68, closing in on the overbought threshold of 70. This suggests strong buying momentum but also warns that the market may soon face short-term exhaustion, which may result in a potential pullback.

Meanwhile, the Moving Average Convergence Divergence (MACD) is also supporting the bullish stance, with the blue MACD line (0.967) trending above the orange signal line (0.479) and the histogram turning positive. This suggests that bullish momentum is still strengthening, supporting the ongoing rally.

The price of Avalanche appears to be in the early stages of a bullish breakout. If momentum continues, the price of AVAX could soon test the psychological resistance near $30 and then target the $35.55 Fibonacci extension level. A decisive break above this zone would open the path toward $44.45 in the medium term.

However, if the market faces rejection near $30, the Avalanche token price may retrace toward the $24.15 support level provided by the 50-day SMA.