- Binance’s announcement of the upcoming launch of a USDC-margined AVAX Perpetual Contract on its Futures platform has sparked a surge in Avalanche (AVAX) price.
- Amidst a broader market consolidation, Avalanche (AVAX) has shown remarkable resilience and upward momentum, with a 55% surge between March 11 and March 18.
The Avalanche (AVAX) price surged by more than 13% in the last 24 hours, capturing the attention of both crypto enthusiasts and investors. Analysts attribute this spike to a significant move by the leading cryptocurrency exchange, Binance.
Earlier today, Binance announced the upcoming launch of a USDC-margined AVAX Perpetual Contract on its Futures platform, slated for March 20, 2024, at 07:00 (UTC). With leverage of up to 75x, this initiative aims to broaden trading opportunities and enhance the user experience on Binance Futures.
Furthermore, users can benefit from a 10% promotional trading fee discount until April 3, 2024, 12:30 (UTC) on all trades of USDC-margined futures contracts. Additionally, the introduction of the Multi-Assets Mode feature enables trading across multiple margin assets, offering users greater flexibility.
This move underscores Binance’s strategic commitment to diversifying its offerings and catering to the evolving requirements of its user base. By facilitating access to AVAX trading with improved leverage options, Binance seeks to stimulate trading activity and strengthen market liquidity for AVAX.
The AVAX price has registered strong gains recently amid the broader market rally. However, despite the consolidation in the entire crypto space, AVAX continues its journey ahead. Over the last week, when the broader market gave a muted move, the AVAX price was up by 30%. Since the beginning of 2024, the AVAX price has gained a total of 70%.
Avalanche (AVAX) Price Action
Between March 11 and March 18, Avalanche (AVAX) experienced an impressive surge of 55%, surpassing the $60 threshold for the first time in two years. Notably, a rare bullish signal has emerged in the derivatives markets, suggesting potential further momentum for Avalanche prices in the upcoming week. Furthermore, in the latest development, Avalanche is also making a move into the rapidly emerging meme coin market, reports Crypto News Flash.
Coinglass’ Funding Rate metric, which indicates the collective fees paid by LONG contract holders to SHORTs to maintain their bullish positions, has experienced a significant decline as the Avalanche price rally unfolded.
This decline in funding rates could be interpreted as a significant bullish signal by strategic investors for several reasons. Firstly, it may indicate an improvement in market efficiency or a reduction in market volatility, potentially leading to increased confidence and a surge in buying interest.
Secondly, the decrease in the cost of leverage could incentivize more traders to enter the market or increase their position sizes, resulting in heightened buying pressure and upward price movement. Furthermore, it may signal to new participants that despite the recent 55% price increase, the Avalanche market remains attractive and not yet overheated.
Considering the substantial 89% decline in Avalanche funding rates alongside the 55% rally, AVAX appears poised to embark on another upward trajectory towards the $75 mark in the upcoming week.
However, in the short term, bulls may encounter significant initial resistance around the $65 level. A decisive breakthrough above this level could trigger a substantial rally towards $75.
