Open interest for AVAX has been on a steady rise 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 the May 2022 level, a development that could spell a big rally for the price.
AVAX Open Interest Surge To $224 Million
According to data from Coinglass, open interest in AVAX has now risen to $224 million. The website showed that there was a more than 10% increase in open interest in a 24-hour period bringing the total open interest to more than 10.04 million AVAX.
Binance actually commands almost half of this total open interest at 4.48 million AVAX worth a little over $100 million. This suggests that a good part of the demand comes from crypto exchanges. Total open interest also saw a 9.94% increase in the 24-hour period.
The ByBit exchange accounts for the second largest open interest at 2.04 million AVAX worth $46.09 million. BingX is in third place with 1.24 million AVAX worth $27.59. But none of these exchanges caused the biggest jump in the last day.
The biggest jump in open interest was recorded on the Bitmex exchange as it increased by 17.78% to bring the total open interest of the crypto exchange to 55,340 AVAX with $1.53 million. In general, the open interest in the altcoin increased from $ 82.8 million on October 20 to $ 224 million on November 20, which means that the open interest grew by 170% in one month.
Token price holds above $22 | Source: AVAXUSD on Tradingview.com
Can the Price Cross $30?
The last time AVAX open interest was as high, the price traded 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 at $50.
Also, looking at the historical performance of AVAX, it shows that whenever the open interest quickly rises, the price tends to follow. This was the case in August 2021 when open interest went from $14.53 million to $123.5 million, and the price of AVAX increased from $19.15 to $55.
If the same trend happens here, then $30 could just be a starting point for AVAX’s price. After all the historical performances, the current volume of open interest puts the fair price of AVAX at around $40, meaning that the altcoin can be traded well below the fair value.