- July 13th, Thursday, was one of the most bullish days so far, and many cryptocurrencies, including Avalanche, benefited from it.
- On-chain data confirmed that the recent rally of AVAX was supported by strong demand in the derivatives segment.
- The AVAX rally initially started as a reaction to Ripple’s victory against the SEC. This development triggered a bullish sentiment in the overall cryptocurrency market and led to significant gains.
Avalanche joined the rise following the development in the XRP case and approached $16, but there may be another factor triggering this surge!
Bulls Prevailed in AVAX Price
July 13th, Thursday, was one of the most bullish days so far, and many cryptocurrencies, including Avalanche, benefited from it. Although the bullish momentum slowed down in the last 24 hours, it did not apply to AVAX. The AVAX bulls maintained their dominant position until the past 24 hours. The rally reached $15.97 with a gain of 24% in the last two days.
However, it experienced some selling pressure after the rally and retraced to a price level of $14.90. This retracement occurred briefly after interacting with the 200-day moving average and served as a level of profit-taking for some traders.
Despite the recent rally, AVAX was not yet in the overbought zone, but the Relative Strength Index (RSI) approached the overbought range. On-chain data confirmed that the recent rally of AVAX was supported by strong demand in the derivatives segment. Both Binance and DYDX funding rates recorded an increase in positive funding rates.
AVAX traders show a tendency for further upside
While these findings indicate strong demand, it is important to consider the reason behind this demand. The AVAX rally initially started as a reaction to Ripple’s victory against the SEC. This development triggered a bullish sentiment in the overall cryptocurrency market and led to significant gains.
This demand was short-lived for most cryptocurrencies, but not for AVAX. AVAX bulls maintained their strong momentum until the past 24 hours. Another development that likely influenced this outcome was the expansion of Uniswap to the Avalanche blockchain. This means that DeFi users can now access Avalanche and its offerings.
This development may have instilled more confidence in AVAX supporters and extended the accumulation phase in the past 24 hours. We have already seen some selling pressure returning to the market, and the accumulation phase may not necessarily be linear. However, investors and traders should pay attention to factors that can encourage holding rather than short-term profit-taking.
