Open interest for AVAX has been steadily rising over the past month, bringing the price of the altcoin with it. The result of this continued rise is the fact that open interest has now risen to its May 2022 level, a development that could mean a massive rally for the price.
AVAX Open Interest Rises to $224 Million
According to data from Coinglass, AVAX’s open interest has now risen to $224 million. The website shows that open interest increased by more than 10% in a 24-hour period, bringing total open interest above 10.04 million AVAX.
Binance actually controls almost half of the total of this open interest at 4.48 million AVAX worth just over $100 million. This suggests that a large part of the demand is coming from the crypto exchange. Total open interest also saw an increase of 9.94% in the 24-hour period.
Source: CoinGlass
ByBit Exchange is responsible for the second largest open interest with 2.04 million AVAX worth $46.09 million. BingX comes in third with 1.24 million AVAX worth $27.59. But none of these markets are responsible for the biggest jump in the past day.
The biggest increase in open interest was recorded on the Bitmex exchange, which rose 17.78%, bringing the crypto exchange’s total open interest to 55,340 AVAX with $1.53 million. In total, open interest in the altcoin has increased from $82.8 million on October 20 to $224 million on November 20, meaning open interest has grown by 170% in one month.
Token price holds above $22 | Source: AVAXUSD on Tradingview.com
Can the price exceed $30?
The last time AVAX’s open interest was this high, the price traded much higher, opening the possibility of a rally above $30. As Coinglass data shows, the last time open interest exceeded $220 million was in May 2022, when the price was still trading above $50.
Also looking at AVAX’s historical performance shows that when open interest has risen rapidly, price tends to follow suit. This was the case in August 2021, when open interest rose from $14.53 million to $123.5 million, and the AVAX price correspondingly rose from $19.15 to $55.
If the same trend were to occur here, $30 could be just a starting point for AVAX price. After all the historical performance, the current volume of open interest puts AVAX’s fair price at around $40, meaning the altcoin could be trading well below its fair value.
