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Why AVAX’s Latest Bullish Stride May Be Closely Linked to These DeFi Networks

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Thursday, July 13th, marked a very bullish day for the cryptocurrency market in 2023. Avalanche (AVAX) emerged as the main beneficiary of the bullish momentum, extending the rally into the last 24 hours. Despite the slight pullback and interaction with the 200 day moving average, AVAX remains strong. Additionally, Uniswap’s expansion into the Avalanche ecosystem has added fuel to the AVAX buildup, raising questions about its sustainability over the weekend.

AVAX Bulls Dominate: Gain 24% in Two Days

AVAX bulls have shown overwhelming dominance in the last 24 hours, pushing the price up to $15.97. This spike represents a substantial 24% gain in just two days. However, some selling pressure ensued after the rally, causing a minor dip to $15.25. Traders see the 200-day moving average as a take-profit level, resulting in a pullback.

Demand for Derivatives and the Spot Market Surge

Despite the recent rally, AVAX is not yet overbought, as indicated by the Relative Strength Index (RSI) which is approaching the overbought range. On-chain data revealed that strong demand from the derivatives segment fueled AVAX’s rally, with Binance and DYDX funding rates seeing positive funding rates jump. This strong demand for derivatives reflects the overall state of the spot market, where AVAX volumes experienced a significant jump in the last 48 hours. The participation of whales and retail investors further confirms the growing demand.

Uniswap Expands into Avalanche Ecosystem

While the AVAX rally stemmed initially from Ripple’s legal win against the SEC, a different development seems to be keeping its momentum. Uniswap, a leading decentralized exchange, has expanded its reach to the Avalanche blockchain. This integration allows DeFi users to access Avalanche and its offerings via Uniswap. The news has injected even more confidence into AVAX fans, leading to an extended accumulation over the past 24 hours.

Challenges and Outlook

Despite the positive developments, AVAX may face challenges in maintaining its current demand. Market pressure is starting to creep back in, and the accumulation trend may not follow a linear path. However, investors and traders should monitor factors that may encourage long-term holdings rather than short-term profit taking. Uniswap’s expansion into the Avalanches may continue to fuel enthusiasm, but it remains to be seen whether the bullish sentiment will persist through the weekend.

As AVAX rides a bullish wave and eyes a retest of the 200-day moving average, Uniswap’s integration into the Avalanche ecosystem has provided a further impetus to its rally. AVAX enthusiasts have demonstrated strong accumulations, supported by strong demand from the derivatives segment and increased spot market activity. While challenges lie ahead, the weekend will be crucial in determining the longevity of AVAX’s current momentum. Investors and traders must remain vigilant and consider the factors that influence their investment strategy.

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