AVAX Open Interest Explodes, 30% Price Rally Incoming?

After experiencing a notable upward rally in recent days, Avalanche (AVAX) price action confirms that the rally is likely to continue in the coming days. This bullish outlook has attracted a lot of attention from traders and investors, leading to a record increase in Open Interest.

Record increase in open interest

According to the on-chain analytics company Mint glassAVAX’s open interest has skyrocketed to $441.09 million, the highest since May 2024. Particularly following the election of pro-crypto Donald Trump as President of the United States, open interest has risen from $262 million to the current $441.09 million.

As of November 22, 2024, AVAX’s open interest is up 21% in the last 24 hours and 14.56% in the last four hours. This significant increase in OI indicates growing interest from traders amid a bullish price action pattern.

Why is the AVAX price rising?

The possible reason for traders’ interest in AVAX is the recent breakout from the consolidation zone, which has paved the way for a possible 30% increase in the altcoin in the coming days.

Avalanche’s (AVAX) technical analysis and upcoming level

According to AVAX’s daily chart, the altcoin broke through a strong resistance level of $32 on November 11, 2024. Since then, the altcoin has traded within a tight range of $32 to $36.

With notable interest from traders and investors, AVAX broke out of that tight range today, shifting market sentiment toward bullish.

Based on the recent price action and historical momentum, there is a strong possibility that AVAX could rise 30% and possibly reach the $50 level in the coming days.

Currently, the asset is trading above the 200 Exponential Moving Average (EMA) on the daily time frame, indicating an uptrend. Moreover, the Relative Strength Index (RSI) suggests that AVAX still has room to rise in the coming days.

Current price momentum

At the time of writing, the asset is trading around $39.55 and has seen a price increase of over 12% in the last 24 hours. During the same period, AVAX trading volume rose 52%, indicating greater participation from traders and investors amid a bullish outlook.