Altcoin
Coinbase’s AVAX update – Identifying whether this will impact altcoin’s price
AVAX’s surge on the charts is an anomaly. Will it last though?
- AVAX surged by 11.92% in the last 7 days
- Coinbase derivatives has now filed for AVAX’s Futures certification with the CFTC
Avalanche (AVAX) continues to defy market trends with a sustained hike on the charts. Although most altcoins have recorded sharp declines, AVAX remains strong and well-positioned to climb amidst BTC’s volatility. Over the last 7 days alone, various factors have driven AVAX’s positive price trajectory.
For starters, Coinbase Derivatives made news recently after it officially filed certifications with the CFTC to offer U.S-regulated Futures for AVAX. Additionally, Coinbase will also be looking at LINK, DOT, Stellar, and Shiba Inu Futures.
This is a major milestone as it will boost investor confidence in the altcoin. Also, institutional and other retail investors will view AVAX as a mature asset that is gathering attention from big market players.
That’s not all either, as Moongate announced its integration of AVAX too. In a post on X, its team stated,
“We’re excited to announce Moongate has just integrated with @avax! With #Avalanche, we’re bringing a new level of transaction efficiency and security to our platform.”
These developments are positive endorsements for AVAX, which can potentially affect market sentiment and activities. In fact, these moves have left analysts optimistic, with many now predicting huge gains for AVAX. Popular analyst John Mayer
, for instance, shared,“The price of $AVAX rose sharply today before slightly paring back its gains in steady volume. We’ve retaken $28; next, we should go for $30. #Avalanche is currently focused on gaming partnerships, with small but growing #DeFi apps and increasing #NFT activity.”
What do key indicators suggest?
Now, while most analysts’ projections and market developments are favoring AVAX, what do the metrics say?
Source: Coinglass
AMBCrypto’s analysis revealed that AVAX has been on an upward trajectory and will continue to be on one. Our analysis of Coinglass’s data also pointed to lower liquidation rates for long position holders and higher liquidation for short positions.
Higher liquidations for short positions are a sign that investors betting against the market are out of money. From 25 June, short position holders have been forced to close their positions while long positions continue to hold and open new ones. This can be interpreted as a bullish signal.
Source: IntoTheBlock
According to IntoTheBlock, AVAX has registered an accumulation phase over the last 7 days. Within this period, large transactions surged by 280%. These activities resulted in greater buying pressure, thus driving prices up.
What do the price charts say?
Since the market has low liquidity for long positions, a higher number of large transactions indicates an accumulation phase.
Looking further, over the last 7 days, the OBV rose from a low of 33 to 37 at press time too. Rising OBV is a sign of volume on the buying side, resulting in a price hike and bullish behavior.
Source: Tradingview
Finally, the Money Flow Index (MFI) surged from 16 on 24 June to 35, at the time of writing.
A sharp hike in MFI usually indicates growing buying activity, resulting in a transition from higher selling pressure to a bearish market.
