Institutions have completely raided the crypto market through treasuries, and they are seemingly influencing every other move in this sector. Most of these crypto treasuries are undervalued, as they are directly related to the price movements of the underlying assets.
Avalanche continues to rank among the most sought-after blockchains in the decentralized finance (DeFi) space, particularly in the real-world asset (RWA) sector. The altcoin saw a major boost over the past 24 hours, though its price rose by less than 1%.
This boost came in the form of institutional capital inflow from one of the Avalanche crypto treasuries. How will this impact AVAX price action going forward, given it’s sitting in an opportune zone?
Avalanche crypto treasury company, AVAX One (NASDAQ: AVX), announced a partnership with Treehouse to expand yield-generating capabilities. According to a post on X, the two firms plan to deploy about 800K AVAX tokens into their yield strategy.
This amount to be staked represented 90% of all its holdings, with the program expected to yield about 180K AVAX tokens in the first quarter of 2026. These tokens would be equivalent to $1.8 million, based on Avalanche’s current valuation.
AVAX One x Treehouse partnership | Source: AVAX One/X
This move by the treasury company indicated that the altcoin would not be subject to immediate sell pressure, as staking involves locking the tokens. Usually, individual participants and institutions stake when they are not planning to offload their holdings in the near term.
With this shield against instant sell pressure, will AVAX price repeat its previous rally?
Looking at the weekly price chart of Avalanche crypto, it seemed to be in line with a historical trend that started in 2021. This setup was forming for the third time in five years, and if history repeats, AVAX price may rally to $20 and eventually the $50 zone.
For context, each time the altcoin reached the lower slanting support just above $8, the downtrend was broken, momentum reset, and the price would then rally. This was evident in uptrends seen in 2021 and 2023.
Momentum indicators supported the projections, with the RSI breaking above a descending trendline, as it had in previous instances. Additionally, the Stochastic RSI had a bullish crossover after a double bottom pattern.
Avalanche crypto price action chart | Source: TradingView
Conversely, a breakdown of the descending support level would invalidate this bullish projection. Using historical context, the most likely move was for the AVAX price to move toward the mid-level at $20 in the short term and above $50 in the long term.
Meanwhile, Avalanche crypto was also listed among the top 10 RWA projects by social activity, ranking fourth with 617.4K mentions. This demonstrated that institutional accumulation, capital from RWAs, and growing social dominance supported the anticipated AVAX price rally.
Chainlink (LINK) led this group with 14.2 million mentions, followed by Zebec Network (ZBCN) and VeChain (VET). Other popular cryptos that made this list were Internet Computer (ICP), Ondo Finance (ONDO), Hedera (HBAR), Injective (INJ), and Stellar Lumens (XLM).
Top RWA projects by social activity | Source: LunarCrush
Altogether, these factors were backing a bullish move, but the uncertainties of the crypto markets could not be ignored. This is following the fact that the crypto market was behaving differently from previous cycles. For instance, the last quarter of the year is often bullish, but 2025 was bearish.
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