Avalanche Price Prediction: AVAX Open Interest Soars to $800 Million, Long Positions Eyeing $30

Avalanche (AVAX) price today (22nd) reported at 25.56 USD during the Asian afternoon session. Despite a short-term pullback, the weekly gain still reached 22%. Derivative products and on-chain data support a bullish view, as AVAX's open interest (OI) has reached record levels, and Total Value Locked continues to rise. Technical outlook indicates an upward trend, with long positions targeting a breakout above 30 USD.

AVAX derivatives and on-chain data show bullish tendencies

According to data from CoinGlass, the holdings of Avalanche futures on the exchange skyrocketed from 667.08 million USD on Saturday to 796.35 million USD on Tuesday, setting a new historical high. The increase in open interest indicates that new or additional funds are entering the market, along with new buying pressure, which could drive the current price of AVAX up.

(Source: Coinglass)

Data from the crypto intelligence tracking agency DefiLlama shows that AVAX's Total Value Locked (TVL) has been continuously rising, increasing from $1.49 billion on July 1 to $1.93 billion on Tuesday, reaching its highest level since September 2022. The rise in TVL indicates growing activity and interest within the Avalanche ecosystem, suggesting that more and more users are depositing or utilizing assets in AVAX-based protocols.

(Source: DefiLlama)

Another factor supporting the bullish outlook for the platform is the recent surge in interest and liquidity from traders in the Avalanche blockchain. A post released by Avalanche X on Monday emphasized that its daily block processing volume has significantly increased to 600,000, reflecting a sharp rise in network activity since 2021.

Avalanche Price Prediction: AVAX Long Positions Aim for Above 30 USD

Avalanche's stock price broke above the 200-day Exponential Moving Average (EMA) at $23.34 on Thursday and found support near that level the next day, rising 7.44% on Monday. As of Tuesday when this article was written, it was trading at approximately $25.73.

If AVAX continues its upward trend and closes above the daily resistance level of $26.43, its pump may extend to the 50% Fibonacci retracement level of $30.11 (this level is derived from the January high of $45.27 down to the April low of $14.96). If it successfully closes above this level, it may further rise to the 61.8% Fibonacci retracement level of $33.69.

On the daily chart, the Relative Strength Index (RSI) is at 78, above the overbought level of 70, indicating strong bullish momentum. At the same time, the Moving Average Convergence Divergence (MACD) indicator showed a bullish crossover in early July and is still valid. The green histogram is rising above the neutral zero line, indicating that bullish momentum is strengthening.

However, if AVAX faces a pullback, it may continue to decline and find support near the 200-day EMA of $23.34.

(Source: Trading View)