AVAX open interest has risen steadily over the past month, dragging the altcoin price with it. The result of this continued rise is the fact that open interest has now risen to May 2022 levels, a development that could mean a massive price rally.
AVAX open interest rises to $224 million
According to Coinglass data, AVAX open interest has now risen to $224 million. The website shows that there was an over 10% increase in open interest in a 24-hour period, pushing the total open interest above 10.04 million AVAX.
Binance actually controls almost half of this total open interest with 4.48 million AVAX worth just over $100 million. This suggests that a good portion of the demand is coming from the crypto exchange. Total open interest also saw a 9.94% increase in the 24-hour period.
The ByBit exchange represents the second largest open interest with 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 trades represent the biggest jump of the past day.
The biggest jump in open interest was recorded on the Bitmex exchange as it surged 17.78% to bring 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 cross $30?
The last time AVAX open interest was this high, the price was trading much higher, opening up 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.
Furthermore, looking at the historical performance of AVAX shows that whenever open interest has increased rapidly, the 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 AVAX price increased accordingly from $19.15 to $55.
If the same trend were to occur here, then $30 could be just a starting point for the AVAX price. Following all historical performances, the current open interest volume places AVAX’s fair price at around $40, meaning the altcoin could be trading well below its fair value.