- Axelar’s AXL token jumped back to $1 on Tuesday.
- This happened even as other cryptocurrency prices retreated.
- Futures open interest and shorts liquidations jumped.
Axelar (AXL) price defied gravity in the overnight session as other cryptocurrencies plunged. The AXL token jumped to $1, much higher than this week’s low of $0.89. In contrast, Bitcoin plunged below $40,000 while the total market cap of all cryptocurrencies retreated to $1.65 trillion.
Why did Axelar jump?
Axelar token price rebounded as investors looked at its encouraging metrics. The most recent data shows that the network recorded over 177k stakers in its platform, a record high. Over 4.7k stakers have joined while new Axelar users rose from less than 1k in November to over 4k on January 1st.
Most notably, 19 people have staked over 10 million AXL, and 69 have staked less than 1 million tokens. This is a sign that there is an ongoing demand for Axelar, a network that is used by many developers like dYdX, Lido, PancakeSwap, and Decentraland.
For starters, Axelar is a fast-growing blockchain infrastructure provider that connects various networks into one-click experiences. In this case, it connects over 50 blockchains like Cosmos and EVM. It then handles complex interchain activities like automated gas payments and 1-time deposits.
Axelar is powered by the AXL token, which powers the secure cross-chain communication. Holders provide it with the much-needed security and governance tools.
The AXL token surged as data showed that its futures open interest continued rising. Data compiled by CoinGlass shows that this interest jumped to a record high of $4 million on Tuesday, up from $3.75 million in the previous day.
Futures open interest is an important metric that looks at the amount of unfilled orders in the futures market. A higher figure is often seen as a positive thing for a cryptocurrency. Further, Axelar surged as shorts liquidations jumped to over $34k on Monday, a record high.
Axelar price forecast
The 4H chart shows that the AXL token price bottomed at $0.89 on Sunday and then rebounded to over $1 on Tueaday. On the 4H chart, the coin has moved above the 50-period moving average, which is a bullish sign. This has happened in a fairly high-volume environment.
The Relative Strength Index (RSI) and the Stochastic Oscillator have all pointed upwards. AXL has also formed a bullish flag pattern. Therefore, the outlook for the Axelar token is bullish, with the next point to watch being the YTD high of $1.2235.
