Avalanche (AVAX) price made a spectacular bull run this week as demand for alternative coins jumped. The token soared to a high of $57.40 on Tuesday, marking a spectacular rally for a coin that was trading at $8.64 in November last year. It has joined other coins like Amp, Solidus Ai Tech, Acala, and Hifi Finance in a major rally.
Crypto demand rising
AVAX price has done well this year, helped by the strong demand of cryptocurrencies and the Avalanche ecosystem. Data shows that the Total Value Locked (TVL) in the network’s ecosystem has jumped to over $1.9 billion.
The only challenge with Avalanche’s DeFi ecosystem is that Benqi is highly dominant. Benqi has a TVL of over $500 million, accounting for over 40% of all assets in the network. It is followed by AAVE and Trader Joe that have over $377 million and $167 million in assets, respectively.
Avalanche is growing its role in the decentralized exchange (DEX) gradually. Trader Joe handled over $313 million worth of cryptocurrencies in the past 24 hours, making it the 15th-biggest platform in the industry.
Other Avalanche DEX platforms like GMX, Curve, and Pangolin are gaining market share in the industry.
Read more: How to buy Avalanche.
Avalanche price has also jumped as demand in the futures market has jumped. Data by CoinGlass shows that the open interest soared to over $450 million, the highest point on record. Most of this open interest was in Binance, Bybit, and OKX, three of the biggest exchanges in the world.
Open interest is an important gauge in the financial market because it shows the volume of unfilled orders in an asset. A higher number is usually seen as a positive thing.
The Avalanche price rally is also because of the ongoing performance of cryptocurrencies. Bitcoin has jumped to over $71,000 while the crypto fear and greed index has soared to the extreme greed zone of 85.
Avalanche price forecast
The AVAX token price has done well in the past few months. It has now crossed the important resistance point at $50.93, its highest point in December last year. By moving above that level, it invalidated the double-top pattern.
The token has soared above all moving averages. Similarly, the Relative Strength Index (RSI) and the MACD have continued soaring. Therefore, the outlook for Avalanche is bullish, with the next point to watch being at $70. Before that, the token will likely retest the support at $50.
