- Avalanche crypto price has been in a strong uptrend in the past few weeks.
- The coin has more than doubled from its lowest point in October this year.
- XAVA, Avalaunch’s token, has also been in a strong uptrend.
Avalanche (AVAX) price had a great weekend as the token surged to the highest point since April 19th. It jumped to the important psychological level of $20, which was much higher than last month’s low of $8. This rally has brought its total market cap to over $6.57 billion.
Why is AVAX price rising?
There are three main reasons why Avalanche price has just gone vertical. First, this rally is in line with the performance of other cryptocurrencies like Bitcoin, Chainlink, Tron, Ethereum, and Solana. Investors are cheering the potential approval of a spot Bitcoin ETF. And last week, Blackrock filed papers for a spot Ethereum ETF.
Therefore, investors believe that the next move for companies like Blackrock, Invesco, and Grayscale will be to apply for other token ETFs. If this happens, Avalanche will be a top one to watch because of its huge size.
Second, Avalanche price has jumped after Coinbase revealed that it will add support for AVAX and SOL perpetual futures contracts. This listing will happen in Coinbase International and Coinbase Advanced. In most cases, cryptocurrencies jump when a listing by one of the biggest exchanges in the world happens.
Read more: How to buy Avalanche.
Further, AVAX price has surged because of the booming ecosystem. Recently, several large game developers like Shrapnel, Gunzilla Games, and Beam have selected Avalanche as their blockchain provider.
Another fast-growing player in Avalanche ecosystem is Avalaunch, whose token XAVA surged to a multi-month high. Avalaunch is a fundraising and incubation project for developers using the Avalanche blockchain.
Developers love Avalanche because of its superior transaction speeds, low transaction costs, and its reliability.
Meanwhile, Avalanche has been one of the top trending cryptocurrencies across various social media platforms. Additional data shows that the futures open interest has been in a strong uptrend. It peaked at over $156 million during the weekend.
Most of this open interest was in Binance followed by Bybit, OKX, and Bybit. In most periods, a high open interest in the futures open interest is a sign of higher demand.
Avalanche price forecast
The daily chart shows that the AVAX crypto price has been in a strong uptrend in the past few weeks. It has jumped from about $8 in October to $20. Along the way, AVAX token has risen above the important resistance point at $15.97, the highest point on July 14th.
The 100-day and 50-day Exponential Moving Averages (EMA) have formed a bullish crossover pattern. Therefore, the outlook for the token is bullish, with the next level to watch being at $22.74, the highest point on February 2nd.
