Avalanche (AVAX) has posted one of its strongest price performances in months, rising 9% over the past 24 hours and over 25% in the last 30 days. The token is now trading at $29 – marking a clear recovery from earlier lows and pushing it into levels not seen since early 2025.
Institutional Treasury Plans Drive Market Optimism
One of the key catalysts behind the recent surge is the Avalanche Foundation’s $1 billion fundraising initiative. The plan involves setting up two cryptocurrency treasury companies in the United States. These firms – backed by Hivemind Capital and Dragonfly Capital – will raise capital to purchase AVAX directly from the foundation at discounted prices.
The structure of the deal includes converting a Nasdaq-listed company into a treasury vehicle and creating a second one via a SPAC, both with $500 million targets. Notably, Anthony Scaramucci is involved as an advisor to the fundraising process, adding a layer of visibility to the effort.
Read also: Toyota Turns to Avalanche to Bring Cars On-Chain
Technical Setup Signals Overbought Conditions
From a technical perspective, AVAX is now trading above the upper Bollinger Band ($28.30), which suggests strong upside momentum but also places the asset in a statistically stretched position.
Momentum indicators are also elevated – RSI(14) is currently at 67, while RSI(7) has reached 77. These readings place the token close to the typical overbought threshold of 70.
Such levels do not imply an immediate reversal, but they are commonly monitored for signs of trend exhaustion. If the price begins to consolidate or correct, the 23.6% Fibonacci retracement at $26.60 may act as a support level. This zone corresponds with the lower bound of the current move and could serve as a key test for buyers.
