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Key Takeaways
What is fueling AVAX’s bullishness?
A breakout past an 8-month supply zone, prominent partnerships, and digital asset treasury company reports.
After a 94% drawdown from ATHs in the bear market, is $100 too optimistic?
Most altcoins went down 90% or more from previous cycle highs, and some went on to recover most or all the losses.
Avalanche [AVAX] was trading at $34.13, at the time of writing. AVAX has had a bullish September so far, managing to break out past the $27-supply zone that it had been stuck below since February.
In September, AVAX has rallied by 46.8% so far. However, the Layer 1 native token is still 76.3% below its all-time high of $145. Even so, many factors might be lining up to help AVAX hit $100 on the charts.
One is brand visibility. In recent months, Avalanche was selected by FIFA for the development of its own blockchain. The choice was aided by the high throughput, low latency, and full governance control, the announcement read.
Other prominent partnerships include Quboid and Stripe.
The “accelerated basis” listing standards for crypto exchange-traded funds, approved by the U.S. SEC on Wednesday, 17 September, is another factor. It is a significant turn of events for the dozens of Crypto ETFs awaiting the SEC’s approval.
Impact of treasury plays and accelerated ETF approvals
According to the Financial Times, sources have revealed that the Avalanche Foundation is working on two deals to create digital asset treasury companies. One of them would launch a new crypto treasury, while the other would convert an existing company into a treasury.
The Avalanche Foundation is targeting a total raise of approximately $1 billion to launch these efforts and close the deals over the coming weeks.
The first deal targets a $500 million raise through private investment, led by Nasdaq-listed Hivemind. SkyBridge Capital Founder Anthony Scaramucci would be advising on the matter.
The second deal, via a special purpose acquisition company (SPAC) launched by Dragonfly Capital, a blockchain investment firm. Funds will be used to purchase millions of AVAX. FT also revealed that AVAX tokens will be available from the Foundation at a discounted price.
Source: AVAX/USDT on TradingView
AVAX latest rally to its 8-month high was fueled by investor interest and network activity. The weekly chart highlighted the decisive breakout past the $27 supply zone. Additionally, the past two weekly candlesticks have made a 38.15% upward move so far.
At press time, the $35-level represented a strong former support from late 2024 and acted as resistance. The $45 and $55-levels would be the next targets on the weekly timeframe.
Finally, the OBV has trended higher in recent months to reflect steady buying, with the RSI underlining strong bullish momentum. The price action and the positive developments around AVAX mean that it is likely that Avalanche would hit $100 this cycle.