Avalanche (AVAX) Smashes Records: Open Interest Soars to $800M Amid Bullish Frenzy
Avalanche isn't just climbing—it's erupting. The Layer-1 contender just notched an all-time high in open interest, hitting nearly $800 million as traders pile into AVAX futures. Here's why the smart money's betting big.
The OI surge: More than just hype?
When derivatives markets flash these kinds of numbers, it's either a prelude to fireworks or a warning sign. With AVAX, the bulls are clearly in charge—for now. Liquidity's flooding in faster than a VC dumping token unlocks.
What's driving the frenzy?
Speculation's running wild, but let's not pretend this is organic retail demand. Institutional players are circling, and the usual suspects—yield farmers, leverage junkies, and that one crypto influencer who always claims they 'called it'—are along for the ride.
The bottom line:
AVAX is having its moment. Whether this ends in a glorious breakout or another 'buy the rumor, sell the news' debacle depends on whether the network can actually deliver. After all, in crypto, nothing fails like success.
Avalanche’s derivatives and on-chain data show bullish bias
Futures’ OI in Avalanche at exchanges rose from $667.08 million on Saturday to $796.35 million on Tuesday, a new all-time high, according to data from CoinGlass. An increasing OI represents new or additional money entering the market and new buying, which could fuel the current AVAX price rally.
Avalanche Open Interest chart. Source: CoinGlass
Data from crypto intelligence tracker DefiLlama shows that AVAX’s TVL has been constantly rising, from $1.49 billion on July 1 to $1.93 billion on Tuesday, reaching levels not seen since September 2022. This increase in TVL indicates growing activity and interest within Avalanche’s ecosystem, suggesting that more users are depositing or utilizing assets within AVAX-based protocols.
Avalanche TVL chart. Source: DefiLlama
Another aspect bolstering the platform’s bullish outlook is a recent surge in traders’ interest and liquidity in Avalanche’s chain. Avalanche X post on Monday highlights a significant increase to 600,000 blocks processed daily, reflecting a sharp rise in network activity since 2021.
Avalanche Price Forecast: AVAX bulls aiming for levels above $30
Avalanche price broke and closed above the 200-day Exponential Moving Average (EMA) at $23.34 on Thursday, found support around this level the next day and rallied 7.44% until Monday. At the time of writing on Tuesday, it trades at around $25.73.
If AVAX continues its upward trend and closes above the daily resistance at $26.43, it could extend the rally toward its 50% Fibonacci retracement level at $30.11 (drawn from January high of $45.27 to the April low of $14.96). A successful close above this level could extend additional gains toward the 61.8% Fibonacci retracement level at $33.69.
The Relative Strength Index RSI on the daily chart reads 78, which is above its overbought level of 70, indicating strong bullish momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator showed a bullish crossover in early July, which remains in effect. The rising green histogram bars above its neutral zero line suggest that bullish momentum is gaining traction.
AVAX/USDT daily chart
However, if AVAX faces a pullback, it could extend the decline to find support around its 200-day EMA at $23.34.
