- AVAX is riding the bullish wave for a retest of its 200-day moving average.
- Uniswap is expanding its reach into the Avalanche ecosystem.
Thursday, July 13 may have been the most bullish day of 2023 to date and many cryptocurrencies, including Avalanche [AVAX] benefited. While the bullish momentum has faded over the past 24 hours, AVAX has not.
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AVAX bulls extended their dominance well into the last 24 hours (Friday). The rally rose to $15.97 for an aggregate gain of 24% over the past two days.
However, it experienced some selling pressure after the rally, retreating to a price level of $15.25 at the time of writing. This pullback occurred after a brief interaction with the 200-day moving average, which acted as a take-profit level for some traders.
Source: TradingView
Note that AVAX was not yet overbought despite the last rally, although the Relative Strength Index (RSI) moved close to the overbought range. On-chain data confirmed that AVAX’s rally over the past two days has been supported by strong demand from the derivatives segment. Both Binance and DYDX funding rates recorded an increase in positive funding rates.
Source: Sentiment
The strong demand for derivatives reflected the condition of the spot market. AVAX volumes reached a major spike in the last 48 hours, indicating healthy participation from the whale and retail segment. This demand has been building since before the volume spike, as indicated by the rising pattern in weighted sentiment.
Source: Sentiment
AVAX traders are treated to more bullish developments
While these findings indicate a strong demand, it is also wise to investigate the cause of that demand. AVAX’s rally initially started in response to Ripple’s win against the SEC. This development sparked an overall bullish sentiment in the crypto market, leading to significant gains across the board.
That question was short-lived for most cryptocurrencies, but that was not the case for AVAX. AVAX bulls maintained strong momentum well into the past 24 hours.
Another development probably influenced this outcome. Uniswap has reportedly expanded to the Avalanche blockchain. This means DeFi users can now access Avalanche and its offerings.
🦄 @Uniswapthe leading DEX with more than $3.7 billion in TVL, has expanded into the @avax network.
This improvement means that Uniswap, which is currently deployed on seven networks, continues to focus on expanding its reach to new blockchains. ⛓️ https://t.co/FsYTfcysKU
— The Insurgent (@DefiantNews) July 13, 2023
How much are 1,10,100 AVAXs worth today
This development may have given more confidence to AVAX enthusiasts, leading to longer accumulation over the past 24 hours. But will this question prevail over the weekend?
We’ve already seen some pressure coming back to the market, and the accumulation burst may not necessarily be linear. However, investors and traders should look for factors that can encourage hodling rather than short-term profit-taking.