Avalanche Decided To Buy Back 1.9M $AVAX Tokens🥵

Recently the Avalanche team has announced that they will buy back a large amount of $AVAX tokens in upcoming days. In today article we will discuss following topics:-

• Avalanche Decided To Buy Back 1.9M $AVAX Tokens
• Effect Of Buy Back On $AVAX
• $AVAX Technical Aanalysis

Avalanche Will Buy Back $56M Worth $AVAX Token

Avax team announced that they will buy back 1.9M $AVAX tokens of worth $56M that they sold to $LUNA Foundation in 2022. This buyback is a strategic move of the Avalanche team. That is indicating that the team and project is gaining confidence in the future of $AVAX ecosystem. Here are some reasons why they decided to do it:-

1. Support for the Avalanche Ecosystem

Avalanche has seen significant growth in its ecosystem especially regarding DeFi, NFTs and institutional partnerships. The $AVAX buyback is meant to be a strategically executed measure designed to maintain the strength and longevity of its ecosystem. The ability to purchase and retain the part of circulating supply will allow the Avalanche Foundation to do a more effective management tokenomics, further investments into strengthening the platform.

This rather significant expansion comes at a notable time as Avalanche competes with other layer-1 blockchains such as Ethereum and Solana. In order to maintain its place at the top as a blockchain for decentralized applications (dApps) and DeFi protocols, Avalanche must continue to draw in developers, users, and capital. The buyback is another way to stabilize the value of tokens as well raise funds necessary for further development.

2. To Enhance Investor Confidence

The buyback is intended to increase confidence in the investors already invested as well as potential ones. Buybacks are generally considered a good sign in traditional markets, as they signal that a company (or blockchain project) thinks its stock (in this case token )is undervalued. By limiting the supply of $AVAX tokens on the market, Avalanche generates scarcity that may result in price appreciation over time.

This can be particularly comforting for those who have held $AVAX long term. Investors could view this as the foundation using some of its money to buy back a chunk of their own tokens signalling belief in the future:) Meanwhile, the depletion of minting supply results in less upwards pressure placed on $AVAX and may indicate a continued push for further price appreciation.

3. To Maintain Token Value In Regard Of Recent Dip

As you know from last 7 months market is continuously moving downward. Also $AVAX suffered from this dump around 60-70 % in price. Avalanche implemented a buyback to draw some of this volatility and offer a bid for $AVAX in the market. This on one hand makes the buyback an insurance that prevents short-term deviations in the price of the $AVAX affecting the market.

Hence, because of the scale of buybacks which are a significant part of the circulation $AVAX supply, it can minimize the risk of strong pressure on the downside price during periods of market fluctuations. The buyback is also a way to convey a message to the market that Avalanche is actively working on the tokenomics to increase the stability of the token price.

Effect Of Buy Back On $AVAX

The decision of Avalanche to purchase 1.9 million $AVAX tokens is a strategic one aimed at development of the network, increasing investors’ confidence, and adjusting tokenomics to bring more value to the asset. Through the consolidation of the circulating tokens, Avalanche aims at the price stabilization of the token while targeting its future success as it practices the sustainable development of the ecosystem and the development of innovation within the blockchain industry. This buyback will increase investor, Retailers confidence on project due to of that we will see increase in price.

This buyback exemplifies the foundation’s adherence to the core principle of Avalanche’s sustainable development, and the stronger signal to the markets this step is showing that the project’s leadership believes that Avalanche can be sustainable in a more crowded and competitive blockchain ecosystem. The buyback could perhaps be one of the most critical events within Avalanche’s development as a major player in dApps and Web3 as the network expands and more stakeholders demand $AVAX.

Technical Analysis Of AVAX

According to technical analysis in 1D TF chart $AVAX has formed a symmetrical triangle indicating that breakout will be result in mega bullish move that can pump it upto $40. Personally if we buy then we will place first order at current price and second order at $26.80. This level can act as support.

To set target point we have to mark resistance levels. Here are three resistance levels that can act as target point in mid-term:-

• $29.95
• $32.35
• $35.90

These targets are set in accordance of current developments and $BTC situations. If any unwanted news like war/recession get hyped then may we see decline otherwise these t.p are best.

If you find today article informative and interesting then keep visiting website on daily basis for more information. Also tell in comments what should be target point for $AVAX according to your analysis. Remember I will read all comments. And if you have any query then do not forget to ask.