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Avantis (AVNT) was up 24.31% in 24 hours and 34.18% in a week, at press time. Data from Coinalyze showed that Open Interest was up 74%, a sign of strong speculative interest.
Source: Coinalyse
Still, the funding rate was deeply negative, a sign that the perpetual contract price is lower than the spot price. This means that long positions receive funding to keep their positions open, and it also shows a very crowded short trade.
Could this lead to a short-term squeeze and further short-term gains? AMBCrypto also looked at long-term trends to understand whether last week’s gains were the start of a trend reversal.
AVNT trend change begins
After reaching an all-time high of $2.64, just weeks after its launch, AVNT was forced to retrace its steps. The market sell-off in October saw the retracement turn into a downtrend.
Although the altcoin was down 87% from its ATH, there was evidence that the downtrend was ending.
Source: AVNT/USDT on TradingView
The 1-day chart shows a bullish pattern change following the breakout of the downtrend’s lower high at $0.334. This change occurred after three days in which the daily trading volume was well above average.
According to data from CoinMarketCap, daily trading volume was up 265% at the time of writing. The CMF also jumped to +0.22 to show significant capital flows into the market.
The Awesome Oscillator was about to make a bullish crossover. Overall, indicators and price action showed that the downtrend was about to break.
Examine the chances of a possible withdrawal
Source: CoinGlass
There was a liquidity group at $0.384 and $0.40. These magnetic zones are densely populated with liquidation levels, and quite close to price. It is therefore very likely that the Avantis token will reach these pockets in the coming days.
Once this liquidity is eliminated, a sharp pullback could potentially erase the gains of the last five days. Although possible, this outcome is considered unlikely.
Look to buy AVNT on THIS support
Source: AVNT/USDT on TradingView
The CMF has shown a bearish divergence with price, suggesting that a pullback is likely. The $0.333 and D1 chart imbalance at $0.3 are key near-term demand areas that Avantis traders could invest in.
Their next upside targets would be $0.38 and $0.48. A decline below $0.28 would indicate that the token needs time to consolidate before trending upward.
Final Thoughts
- Avantis, the decentralized exchange of RWA on the base chain, saw its native token rebound by 62% in 5 days.
- If the strong demand of the last few days continues, the downward trend in AVNT over several weeks could lead to a reversal of the trend and a symbolic recovery in prices.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
