Avalanche (AVAX) has reclaimed a crucial level as support after its recent rally, fueled by multiple bullish developments for the ecosystem. Some analysts forecast a massive rally toward the start-of-year highs if the momentum holds.
A breakout from this resistance level could set the stage for a rally to the start-of-year range between $40-$45, the market watcher signaled in a previous analysis.
According to the analyst, “if repeated, could open the green pathway toward the red resistance region that is increasingly confluent with the Macro Wedge top.” He explained that AVAX has been forming Higher Lows in the weekly timeframe, positioning the price slightly higher with each retest.
As a result, a weekly close above the $26 area, followed by a successful post-breakout retest, would enable AVAX price to reclaim the $30 resistance region and attempt to retest the Macro Wedge Top, currently around the $35 mark.
Meanwhile, the next major support zone sits around the $24 level, which could be revisited in case of a rejection from the key resistance.
One of the deals, led by Hivemind Capital and advised by SkyBridge’s founder Anthony Scaramucci, aims to raise up to $500 million in a private investment in a Nasdaq-traded company. It is expected to be completed by the end of September.
The other deal, which is expected to be closed in October, seeks to raise the same amount and involves a special purpose acquisition (SPAC) vehicle sponsored by Dragonfly Capital.
Notably, the funds from the two deals will reportedly be destined to purchase millions of AVAX from the Avalanche Foundation’s reserves, which could continue to fuel momentum for the cryptocurrency.
Additionally, the company behind the Avalanche Network also signed a Memorandum of Understanding (MoU) agreement with WeBlock to push Real-World Asset (RWA) tokenization and stablecoins in South Korea.
As of this writing, Avalanche trades at $29.04, a 22.7% increase in the monthly timeframe.
