A major decision by the Avalanche Foundation has led to a surge in the price of AVAX, with a 10% increase that has caught the attention of investors. So, what exactly caused this spike? Let’s delve into the details.
## Smart Move with Luna Foundation Guard (LFG)
In April 2022, Avalanche made a significant move by selling a large number of AVAX tokens to the Luna Foundation Guard (LFG). Now, they are looking to repurchase those tokens, pending approval from the bankruptcy court. Despite the decision not being finalized yet, investors are already showing interest in the potential outcome. The official Avalanche Foundation Twitter account shared this development.
LFG had initially purchased 1.97 million AVAX tokens to support their UST stablecoin. However, faced with financial difficulties, LFG is now on the brink of bankruptcy. Avalanche’s intention to repurchase these tokens aims to prevent a chaotic liquidation process, presenting a favorable opportunity for the foundation if the repurchase is successful.
## Is AVAX Set for Even Bigger Gains?
Currently trading at $28.431, AVAX has seen a 9.3% increase in its price. The reduction in circulating tokens typically leads to price appreciation, as evident in this case. There is speculation that this uptrend could mark the beginning of a more significant surge.
Technical analysis also supports this notion, as AVAX is breaking out of a falling wedge pattern, a bullish indicator. Analysts suggest that surpassing the $30 threshold could propel the price towards $50. The RSI is at 59, and the MACD at 0.379, indicating a positive momentum.
## What’s Next for Avalanche?
Aside from the buyback news, Avalanche received another boost as Colombian neobank Littio transitioned from Ethereum to Avalanche. This move signifies growing trust in Avalanche among businesses and could potentially attract more financial institutions to the platform. The future appears promising for AVAX, with the possibility of more industry players joining the ecosystem.
(Source: [Avalanche Foundation Twitter](https://twitter.com/AvalancheFDN/status/1844825065889907158?ref_src=twsrc%5Etfw))
