AVAX futures open interest remains high, signaling potential bullish continuation

AVAX futures market activity demonstrates sustained institutional interest, with open interest fluctuating around $600 million throughout 2025. This metric serves as a critical indicator of market positioning and conviction among traders and institutional players. The persistence of elevated open interest levels suggests that market participants maintain substantial long exposure to Avalanche, reflecting confidence in the asset's near-term trajectory.

Capital.com client positioning data reinforces this bullish narrative, revealing that 95.6% of positions remain long compared to just 4.4% short as of September 22, 2025. This extreme long bias indicates overwhelming market optimism regarding AVAX's price direction. Technical analysis corroborates these findings, with AVAX trading above its critical moving-average cluster—the 20-day average maintaining position above the 50-day moving average at that time, supporting continued upward momentum.

Market analysts project AVAX could test price targets between $38-$40 range, representing an 11-17% upside potential from September levels. The combination of elevated open interest, extreme long positioning, and technical strength suggests market participants expect continuation of the established uptrend. However, traders should monitor whether these elevated commitment levels persist through consolidation phases, as rapidly declining open interest could signal weakening conviction and potential mean-reversion moves.

Funding rates stay positive despite spot price pressure

Despite AVAX experiencing a significant 8.01% decline over the past 24 hours and trading at $13.32, funding rates have maintained positive momentum, signaling underlying market resilience. This divergence between spot price pressure and funding rate stability reveals important dynamics in the derivatives market.

The positive funding rates indicate that long positions holders remain willing to pay premiums to maintain their leveraged exposure, even as spot prices decline. This suggests strong conviction among institutional and sophisticated traders regarding AVAX's medium-term prospects. Funding rates typically turn positive when bullish sentiment outweighs bearish pressure, reflecting expectations of eventual price recovery.

Market data from December 2025 shows AVAX traded within a range of $13.12 to $14.52 during recent volatility, yet perpetual futures markets continued pricing in net long positions. This behavior contrasts sharply with panic-driven liquidations typical during extreme bear markets. The sustained positive funding environment indicates that rather than capitulation, traders are positioning for rebounds from oversold conditions.

Technical indicators support this interpretation. AVAX's seven-day decline of 10.42% and thirty-day drop of 19.86% have pushed the asset into oversold territory, historically attracting contrarian buying interest. The willingness of traders to pay funding premiums while spot prices struggle demonstrates confidence that current levels represent accumulation opportunities rather than further downside risks.

Options market shows mixed signals with put/call ratio above 1.5

The 2025 AVAX derivatives market presents a complex landscape dominated by bearish positioning, yet tempered by institutional catalysts that warrant careful consideration. The put/call ratio exceeding 1.5 signals pronounced bearish sentiment, reflecting trader concerns about downside vulnerability in the near term.

However, this bearish positioning obscures important structural developments. VanEck's Purposebuilt Fund, launching in June 2025 with over $100 million allocated toward Real-World Asset (RWA) verticals on Avalanche, represents significant institutional validation. Simultaneously, FIFA's blockchain partnership integration provides genuine use-case expansion beyond speculative trading dynamics.

Technical analysis reveals the ascending triangle pattern targeting $30 once resistance breaks, suggesting oversold conditions may not reflect true long-term fundamentals. The positive Chaikin Money Flow indicator contrasts with sustained bearish technicals, creating the mixed-signal environment analysts describe. While elevated put positioning indicates near-term caution, institutional deployment and expanding enterprise adoption suggest the current bearish extreme may represent accumulation opportunities for patient investors monitoring the $22.87 support zone.

Liquidation data reveals AVAX price stabilizing around $0.39 after 79% drop

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Recent market data demonstrates AVAX's significant price volatility and subsequent stabilization pattern following the dramatic 79% decline witnessed earlier in 2025. The cryptocurrency experienced a severe correction that triggered approximately $222 million in liquidations across the market, reflecting the intensity of trader position closures during this turbulent period.

The stabilization phase emerged following the sharp decline, with technical analysis revealing a four-hour consolidation pattern that indicated potential recovery momentum. Diminishing trading volumes during this period suggested that initial panic selling had subsided, allowing price levels to establish support around the $0.39 mark.

Current market data shows AVAX trading at $13.32 with a 24-hour trading volume exceeding $2.37 million. The token's total market capitalization stands at approximately $6.14 billion, maintaining its position among major cryptocurrencies. Historical price data confirms that previous consolidation phases have preceded sustained recovery periods, suggesting that the liquidation-driven volatility may have cleared leveraged positions that could otherwise constrain future price movement. This price stabilization represents a critical juncture where market participants reassess their positions following the intense liquidation event.

FAQ

Is AVAX Coin a good investment?

Yes, AVAX coin is a promising investment. As a leading blockchain platform, Avalanche has shown strong growth potential and technological advantages. By 2025, AVAX is expected to see significant price appreciation due to increased adoption and ecosystem expansion.

Can AVAX reach $100 dollars?

Yes, AVAX could reach $100 by 2025 if it continues to gain adoption and market momentum. Current trends and technological advancements in the Avalanche ecosystem support this potential price target.

Does AVAX Coin have a future?

Yes, AVAX Coin has a bright future. Its price remains strong with support at $14.90, and the technology continues to advance, indicating potential for sustained growth and success.

What is AVAX coin?

AVAX is the native token of the Avalanche network. It's used for transaction fees, network security, and as a unit of account in the ecosystem.