It’s been more than two weeks since Avalanche [AVAX] broke out of its wedge pattern in which the token has been stuck since January 2022. However, the bulls have remained strong despite a few bearish days. The bulls were particularly active in the first week of July, leading to some bullishness, although not by much.
AVAX was among the top gainers on Wednesday (July 6) after an 8.88% rally that pushed the alt price down to $18.34 at press time. This means that AVAX bulls are still building on the momentum seen in the bullish wedge pattern breakout. This observation confirms that strong accumulation during the June lows helped push AVAX’s floor price higher.
AVAX ended June with a bearish retracement punctuated by reduced selling pressure near $16. As a result, the Money Flow Index (MFI) showed some sideways movement before finally reaching some upward movement. This result also paved the way for some significant upside potential over the past five days. However, AVAX is experiencing some friction as the price approaches the 50 Relative Strength Index (RSI) level.
Can AVAX continue its upward movement?
AVAX has maintained a healthy level of social activity over the past few days. His social dominance metric recorded multiple spikes during this period. However, it wasn’t enough to reach the peak of social activity between June 23 and 26.
Note that social dominance peaked while prices were on a bullish trajectory that was soon followed by a bearish correction. However, the recent surge has been helped by the accumulation of whales. Whale-held supply recovered on July 1 from its lowest level in 30 days. It rose from 43.92% to 44.43% over the past six days.
A solid increase in the development activity metric preceded the uptick in whale supply. So what has changed in development? Avalanche has launched the Core app, a browser extension that will act as a Web3 command center for users to manage their assets. Core represents Avalanche’s efforts to provide a simpler user experience.
Additionally, AVAX’s recent price action points to higher lows, but the rally is still characterized by low volume. This means that the continued upside potential could be limited.