Avantis – Can AVNT bulls reverse the 30% correction?
Key Takeaways
Why did AVNT rally by +100%?
AVNT benefited from the perp DEX narrative, triggering 2x returns.
Can bulls reverse the latest 30% correction?
Sure, if optimistic market sentiment prevails till the tip of the month.
Avantis [AVNT], a perpetual DEX, doubled its beneficial properties over the previous few days. The DEX is backed by Peter Thiel’s Founders Fund and Base. It jumped from $1 to $2.4 as merchants chased the perp DEX rotation triggered by Changpeng Zhao (CZ)-backed Aster [ASTER].
As of press time, the perp DEX segment was up 20% – Underscoring robust danger urge for food. Evidently, this raises the query – Can the urge for food reverse AVNT’s latest 30% pullback?
Assessing AVNT’s restoration odds
Supply: AVNT/USD, TradingView
The most recent AVNT rally, which started on 19 September, was additionally fueled by the Binance airdrop to its customers. About 10 million AVNT, or 1% of the entire provide (1 billion), was given to Binance customers, sparking additional curiosity.
Nonetheless, the perps DEX commerce misplaced momentum after most tokens hit over 8x returns from their itemizing worth. AVNT was additionally caught within the profit-taking and dropped by over 30% from $2.6 to $1.7, earlier than reclaiming the $2-level on the time of writing.
Can bulls regain misplaced floor? Effectively, the $1.5-$1.7 zone appeared to be doubling as a golden ratio and essential help and will type a base for bulls to reverse latest losses.
In truth, the latest rebound above $1.7 occurred after centralized exchanges like OKX announced an inventory.
One other shot at $2.5 or $2.6 might provide additional 30% upside beneficial properties for late bulls.
Nonetheless, a sustained dip beneath $1.5 would invalidate the bullish thesis and speed up sellers to push in direction of $1.
A brand new help at $1.7?
The aforementioned thesis can be supported by the weekly liquidation heatmap. In truth, knowledge revealed that there was appreciable leveraged lengthy liquidity at $1.7, one thing that would act as a worth magnet within the close to time period.
Supply: Coinglass
On the upside, key liquidity swimming pools and worth magnets have been at $2.1 and $2.5, making them essential upside targets.
Put merely, the decrease liquidity appeared to align with the golden zone on the value charts. This might make the $1.5-$1.7 vary a key short-term help.
Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion
