Avantis Surges 24% in One Day – Could AVNT Reach $0.40?

Avantis (AVNT) experienced a significant price increase of 24.31% in just 24 hours and 34.18% over the past week. Despite this growth, the funding rate remains negative, indicating many traders are betting against the asset. This article evaluates whether this trend could lead to further price increases and examines the possibility of a trend reversal.

Key Takeaways

Avantis (AVNT) increased by 24.31% in a day and 34.18% over the week.
Open interest surged by 74%, highlighting strong speculative interest.
The current funding rate is deeply negative, indicative of a crowded short position.
AVNT has shown signs of a trend reversal after a significant downtrend.
Key price levels for potential buying opportunities are $0.333 and $0.30.

AVNT breaks downtrend as speculative interest surges

AVNT's Trend Shift Underway

After reaching an all-time high of $2.64 shortly after its launch, AVNT faced a significant decline. The broader market downturn in October contributed to this downtrend. Currently, AVNT is down 87% from its peak, but indicators suggest the downtrend may be reversing.

Avantis 1-day Chart

Source: AVNT/USDT on TradingView

The one-day chart indicates a bullish shift following the break of a downtrend line at $0.334. This shift occurred alongside increasing trading volumes, which were reported to be up 265%. The Chaikin Money Flow (CMF) also rose to +0.22, signaling significant capital inflows. Additionally, the Awesome Oscillator is on the brink of a bullish crossover, reinforcing the idea that the downtrend is on the verge of ending.

Assessing the Likelihood of a Pullback

Avantis Liquidation Heatmap

Source: CoinGlass

Liquidity concentration appears at the $0.384 to $0.40 range. These areas are filled with liquidation levels, making it probable for the Avantis token to test these zones soon. Clearing this liquidity could result in a sharp pullback that potentially wipes out the recent gains. While this scenario is possible, it is viewed as unlikely.

Best Support Levels to Consider for Buying AVNT

Avantis 1-hour Chart

Source: AVNT/USDT on TradingView

Current indicators suggest a bearish divergence in the CMF, pointing toward a possible pullback. Key support levels to watch for potential buying opportunities are $0.333 and $0.30, identified from the daily chart. Future bullish targets for traders include $0.38 and $0.48. A decline below $0.28 could indicate the token needs to consolidate before making any upward movements.

Final Thoughts

Disclaimer: The information shared does not constitute financial, investment, trading, or other types of advice but is based solely on the author's opinion.