Why AVAX’s latest bullish stride may be closely linked to this DeFi network
- AVAX rides the bullish wave for a retest of its 200-day moving average.
- Uniswap extends its reach into the Avalanche ecosystem.
Thursday, 13 July, was perhaps the most bullish day of 2023 so far and many cryptocurrencies, including Avalanche [AVAX] benefited. While the bullish momentum died down in the last 24 hours, that has not been the case for AVAX.
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AVAX bulls extended their dominance well into the last 24 hours (Friday). Its rally pushed as high as $15.97 for an aggregate 24% gain in the last two days.
However, it did experience some selling pressure after the rally, pulling back to a $15.25 press time price level. This pullback occurred after a brief interaction with the 200-day moving average which acted as a take-profit level for some traders.
Note that AVAX was not yet overbought despite the latest rally, although the Relative Strength Index (RSI) pushed close to the overbought range. On-chain data confirmed that AVAX’s rally in the last two days was backed by robust demand from the derivatives segment. Both Binance and DYDX funding rates registered a surge in positive funding rates.
The strong derivatives demand reflected the state of the spot market. AVAX volumes achieved a large spike in the last 48 hours, indicating healthy participation from the whales and the retail segment. This demand has been building up since before the volume spike as indicated by the ascending pattern in the weighted sentiment.
AVAX traders get treated to more bullish developments
While these findings indicate strong demand, it is also prudent to consider the cause of that demand. AVAX’s rally initially started as a reaction to Ripple’s win against the SEC. This development triggered an overall bullish sentiment in the crypto market, leading to substantial gains across the board.
That demand was short-lived for most cryptocurrencies but that was not the case for AVAX. AVAX bulls maintained strong momentum well into the last 24 hours.
A different development likely influenced this outcome. Uniswap has reportedly expanded into the Avalanche blockchain. This means DeFi users will now access Avalanche and its offerings.
This enhancement means that Uniswap, currently deployed across seven networks, continues to bet on expanding its reach to new blockchains. ⛓️ https://t.co/FsYTfcysKU
— The Defiant (@DefiantNews) July 13, 2023
How many are 1,10,100 AVAXs worth today
This development may have injected more confidence into AVAX enthusiasts, resulting in extended accumulation in the last 24 hours. But will this demand prevail during the weekend?
We have already seen some pressure coming back into the market, and the accumulation burst may not necessarily be linear. However, investors and traders should keep an eye out for factors that may incentivize hodling rather than short-term profit-taking.