Avalanche trades above $6.50 on Thursday, recovering nearly 7% so far this week. The rebound is supported by improving conditions in the derivatives market despite muted institutional demand. CoinGlass funding rate for AVAX turned positive on Wednesday, reading 0.0015% on Thursday, indicating that longs are paying shorts and suggesting bullish sentiment. The long-to-short ratio improved to 0.97 on Thursday from 0.77 on Monday, indicating that bearish positioning has started to ease. However, the ratio remains below the bullish threshold of 1; the improvement suggests fading bearish sentiment and weakening downside pressure.