AVAX Set for Even Bigger Gains as Avalanche Foundation Negotiates Repurchase of Tokens From Luna Foundation Guard

A big decision by Avalanche Foundation has sparked this rise and the price of AVAX has surged by 10%. Investors are jumping in and keeping a close watch.

Avalanche (CRYPTO: AVAX) saw a 10% surge in its token price on Friday following a smart move by the Avalanche Foundation. Here's what happened:

What Happened: Back in April 2022, Avalanche sold a large number of AVAX tokens to the Luna Foundation Guard (LFG). Now, they want those tokens back.

The move is not yet final, as it needs the approval of the bankruptcy court.

Avalanche Foundation shared this news from its official X handle.

The Avalanche Foundation has negotiated an agreement to repurchase all AVAX tokens previously sold to the Luna Foundation Guard (LFG) in April 2022, which is now awaiting approval from the Bankruptcy Court. This action ensures that LFG would not violate the original…

LFG initially bought 1.97 million AVAX tokens to support their UST stablecoin. However, LFG is now facing bankruptcy.

Avalanche aims to avoid a messy liquidation of these tokens, and the buyback would be a big win for them if it goes through.

Why It Matters: Less AVAX in circulation usually leads to higher prices for the token. This is precisely what happened on Friday, with the AVAX token price surging by over 9%.

Some traders believe this could be the start of an even bigger surge for AVAX.

Technical indicators are also supporting this theory, with AVAX breaking out of a falling wedge pattern, which is a strong bullish signal.

If the price can break past the $30 mark, some analysts believe it might go straight to $50.

The RSI (Relative Strength Index) stands at 59, and the MACD (Moving Average Convergence Divergence) is at 0.379, signaling upward momentum.

Ava Labs, the company behind the Avalanche blockchain, also announced on Friday that Colombian neobank Littio has switched from the Ethereum (CRYPTO: ETH) network to Avalanche.

Littio offers a range of financial services, including a mobile banking app, debit card, and cryptocurrency exchange.

The neobank has over 100,000 users and is planning to launch new products and services on the Avalanche blockchain.

This move by Littio is a significant step in boosting the adoption of the Avalanche blockchain by financial institutions.

Ava Labs also announced on Friday that several new projects, including a decentralized exchange and a metaverse game, are set to launch on the Avalanche blockchain in the coming months.

These projects are expected to bring new users and liquidity to the Avalanche ecosystem.

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