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Avalanche ( AVAX ) welcomes double Favourable Information: technical breakthrough and $1 billion institutional funding injection.
Avalanche (AVAX) has recently welcomed a dual favourable information from the market and fundamentals. On one hand, its price has successfully broken through a months-long consolidation range on the technical level, showing strong upward momentum; on the other hand, the foundation behind it is actively negotiating to raise a massive $1 billion, aiming to solidify its position in the Capital Market by purchasing AVAX tokens. This technical breakthrough combined with the injection of institutional funds has built a strong bullish narrative for the AVAX token.
Market Performance: Breaking Through Long-term Consolidation, Price Aiming for $32
Technical Breakthrough: AVAX has broken free from a 213-day consolidation and successfully surpassed the significant resistance area around 27 dollars. The "ascending triangle" structure formed on the weekly chart and the bulls' active buying during each pullback provide a strong technical foundation for further price rise.
Bullish Signal: On the daily chart, AVAX has cleanly closed above $27, and the moving averages have confirmed a bullish crossover. This technical signal typically indicates the beginning of a long-term rise trend.
Price target: Analysts believe that if this momentum is maintained, the short-term target for AVAX will be $32 and $36, while in the long term, it may even return to above $40.
Institutional Dynamics: $1 Billion Capital Injection to Strengthen Wall Street Position
Ambitious financing plan: According to the Financial Times, the Avalanche Foundation is negotiating to establish two crypto asset accumulation companies in the United States, with a total goal of raising 1 billion USD.
Core Purpose: The funds will be used to purchase millions of AVAX tokens from the foundation at a discounted price. This move aims to provide financial support for Avalanche's vision to become the primary digital ledger in the capital market and attract more traditional financial institutions to participate.
Key players: One transaction amounting to $500 million was led by Hivemind Capital, while another was conducted through a special purpose acquisition vehicle (SPAC) sponsored by Dragonfly Capital.
On-chain Data: Growth Driven by Fundamentals
RWA and Stablecoin Growth: The total value of Real World Assets (RWA) on the Avalanche network has reached $305 million, growing by 57% within a month. At the same time, the market value of stablecoins on the network has reached $2.68 billion, growing by 30%, reflecting that liquidity is deeply integrating into the ecosystem.
On-chain activity hits record high: Avalanche's on-chain activity has also reached its highest level in nearly two years, with weekly transaction volume soaring to 13.3 million and decentralized exchange (DEX) trading volume surpassing $3 billion.
Conclusion
The recent performance of AVAX is a perfect example of the combined effects of technical and fundamental Favourable Information. While the price has successfully broken through long-term consolidation, the institutions behind it are also supporting their strategic layout through unprecedented financing plans. This model of on-chain growth combined with institutional narratives has created a strong bullish foundation for AVAX, indicating that its recent pump may not just be a correction, but the beginning of a new round of growth and adoption phase.