Key Insights:
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Avalanche (AVAX) rallied by 5.69% on Thursday.
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News of Luna Foundation Guard planning to acquire $100 million of AVAX to build UST reserves delivered support.
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Technical indicators flash green, with AVAX holding above the 200-day EMA.
It was a bullish day for AVAX on Thursday, with AVAX leading the top ten crypto majors on the day.
Partially reversing an 8.85% slide from Wednesday, AVAX rallied by 5.69% on Thursday to end the day at $87.66.
Luna Foundation Guard Delivers an AVAX Boost
On Thursday, news of the Luna Foundation Guard (LFG) planning to acquire $100 million in AVAX to further build reserves for its UST stablecoin delivered support.
Avalanche announced the news of the planned purchase on Twitter following an earlier Bloomberg report.
The LFG also purchased $231 million Bitcoin (BTC).
AVAX Price Action
At the time of writing, AVAX was up 0.10% to $87.75.
Technical Indicators
AVAX will need to avoid the day’s $85.90 pivot to make a run on the First Major Resistance Level at $90.41. AVAX would need the broader crypto market to support a breakthrough Thursday’s high of $88.65.
An extended rally would test the Second Major Resistance Level at $93.18 and resistance at $95. The Third Major Resistance Level sits at $100.39.
A fall through the pivot would test the First Major Support Level at $83.14. Barring an extended sell-off, AVAX should avoid a return to sub-$80. The Second Major Support Level sits at $78.63.
Looking at the EMAs and the 4-hourly candlestick chart (above), it is a bullish signal. AVAX continues to hold above the 200-day EMA, currently at $86.99. This morning, the 50-day EMA has converged on the 100-day EMA to test support. The 100-day EMA pulled away from the 200-day EMA, providing support.
A move through the 100-day EMA at $90.15 would bring $95 into play.
This article was originally posted on FX Empire