The recent surge in Avalanche’s (AVAX) price has captured the attention of traders and investors, signaling that the current upward trend may persist in the days to come. This optimistic outlook has not only sparked interest but also led to a significant increase in Open Interest, showcasing the heightened engagement from the market.
Record Surge in Open Interest
In a remarkable display of market activity, AVAX’s open interest has reached an unprecedented level of $441.09 million, as reported by the on-chain analytics firm, Coinglass. This figure represents the highest point since May 2024, underscoring the growing enthusiasm within the crypto community. Following the election of pro-crypto advocate Donald Trump as President of the United States, open interest witnessed a dramatic rise from $262 million to the current peak.
As of November 22, 2024, AVAX’s open interest has experienced a notable increase of 21% in just the past 24 hours, with a 14.56% rise occurring within the last four hours alone. This upward trajectory in open interest indicates a burgeoning interest from traders, aligning with the prevailing bullish sentiment.
Reasons Behind AVAX’s Price Increase
The recent surge in AVAX’s price can be attributed to its breakout from a prolonged consolidation phase. This strategic move has paved the way for the altcoin to potentially achieve a remarkable 30% increase in value over the coming days. The anticipation surrounding this potential growth has further fueled interest among traders and investors.
Avalanche’s (AVAX) Technical Analysis and Upcoming Levels
Examining AVAX’s daily chart reveals a critical breakout from a formidable resistance level at $32 on November 11, 2024. Since this pivotal moment, the altcoin has been trading within a narrow range of $32 to $36. However, recent developments have enabled AVAX to break free from this range, shifting the market sentiment towards a bullish outlook.
Based on the observed price action and historical momentum, there is a strong possibility that AVAX could experience a 30% surge, potentially reaching the $50 mark in the near future. Presently, the asset is trading above the 200 Exponential Moving Average (EMA) on the daily time frame, indicating a prevailing uptrend. Additionally, the Relative Strength Index (RSI) suggests that AVAX retains the potential for further gains in the days ahead.
Current Price Momentum
At the time of writing, AVAX is trading at approximately $39.55, reflecting a significant price increase of over 12% within the past 24 hours. During this period, the altcoin’s trading volume has surged by an impressive 52%, highlighting the growing participation from traders and investors amidst a bullish market outlook.
In conclusion, the current dynamics surrounding Avalanche (AVAX) point towards continued positive momentum, with traders and investors closely monitoring its performance. As the market evolves, AVAX’s potential for growth remains a focal point for the crypto community.
