- Avalanche (AVAX) sees a 10.4% increase in open interest, reaching $224 million, potentially indicating an upcoming price rally.
- Historical data suggests a correlation between rising open interest and price surges in AVAX, raising the possibility of the price crossing $30.
Avalanche’s Escalating Market Momentum
The Avalanche (AVAX) cryptocurrency is witnessing a significant uptick in market interest, as evidenced by the substantial rise in its open interest. Over the past month, this key metric has escalated to levels last seen in May 2022, hinting at a possible rally in AVAX’s price.
Surge in Open Interest to $224 Million
Data from Coinglass reveals that AVAX’s open interest has soared to $224 million, marking an over 10% increase within a 24-hour span. This surge brings the total open interest to more than 10.04 million AVAX. Binance, a prominent player in this development, holds nearly half of this open interest, amounting to approximately $100 million.
Exchange Dynamics and Market Influence
ByBit and BingX trail behind Binance, accounting for significant portions of AVAX’s open interest. However, the most substantial increase was recorded on the Bitmex exchange, which saw a 17.78% jump, contributing to the overall growth in AVAX’s open interest from $82.8 million to $224 million within a month – a 170% expansion.
Potential for Price Rally Above $30
The current surge in open interest mirrors past scenarios where AVAX experienced significant price increases following similar trends. For instance, during August 2021, a rise in open interest from $14.53 million to $123.5 million was accompanied by a price jump from $19.15 to $55. Given this historical pattern, the possibility of AVAX’s price surpassing $30 seems plausible, potentially even reaching a ‘fair price’ around $40 based on the current volume of open interest.
AVAX’s Price Dynamics and Future Outlook
With the token price holding above $22, the growing open interest in AVAX points to a potentially bullish future for the altcoin. The historical correlation between open interest and price movements suggests that AVAX could be undervalued at its current trading price, setting the stage for a significant market movement.
The Road Ahead for Avalanche
As AVAX navigates this pivotal phase, its market dynamics, bolstered by increasing open interest and historical trends, paint a promising picture for its price trajectory. Investors and market observers will closely watch to see if AVAX can indeed breach the $30 threshold and align with its projected fair value in the evolving cryptocurrency landscape.