On-chain activity for Avalanche (AVAX) has been on the rise, which could indicate renewed investor interest in the altcoin. If the AVAX price can show a proper reversal, creating a bottom, investors might find it a valid long opportunity.
AVAX Open Interest Looks Potent For Bulls
One important indicator of price insights, Open Interest, has increased noticeably. Avalanche's Open Interest increased to $170.5 million by August 20 from $156.20 million on August 19. AVAX's price held steady during this time, increasing the possibility of rising momentum.
As is currently the case, when Open Interest rises throughout price reorganization, a notable price movement is frequently imminent. This could be favorable for AVAX for two reasons: traders may have more faith in the asset now, and if bears cannot drive the price below important support levels, there may be a brief squeeze.
Lower Inflation Is Positive For AVAX Bulls
One such upbeat catalyst is the US Bureau of Labor Statistics release on August 14 of the dovish inflation rate for CPI data. The data indicated a slowdown in inflation, which is a good thing that has changed sentiment in derivatives trading even though it did not show up right away in AVAX's spot market.
The fact that retail and whales are still rising implies that a diverse group of AVAX owners are participating.
