RAVE Surges by 29%: Is the Post-Launch Correction Behind Us?

In the days following its launch, RAVE cryptocurrency has shown impressive growth on the charts. RaveDAO [RAVE], which focuses on a web3 entertainment ecosystem, experienced a remarkable increase of over 29% in the last 24 hours, coinciding with a trading volume boost of 23%. This price movement appears to have reversed the post-launch correction. However, the sustainability of this upward trend amid a temporary shift toward small-cap coins raises questions.

Key Takeaways

RAVE cryptocurrency has experienced a 29% increase in just 24 hours.
The token launched at $0.50, dropped to $0.27, and then recovered to $0.50 within the same day.
Increased exchange listings, particularly on OKX and Kraken, have fueled this day’s growth.
On-chain data indicates that active trading and accumulation continue among investors, even after significant profits were taken by major traders.
Current liquidity conditions and trader sentiment are pivotal factors in determining RAVE's future price movements.

Is the Post-Launch Price Correction Finished?

RAVE was introduced on December 14 at approximately $0.50 but quickly fell into a correction phase, dropping to $0.27. Interestingly, on the same day, RAVE rebounded from its low and returned to the $0.50 mark. This initial price movement was driven by launch excitement and strategic buying from savvy traders. While RAVE's price was above the SuperTrend indicator, it had dipped below the rising trendline at the time of writing.

Overall, the data suggested bullish control over the price. The Open Interest (OI) also mirrored this trend, exceeding $17 million as of our report.

RaveDAO Source: TradingView

This sudden change in OI direction could suggest that the post-launch correction phase may be concluding. However, during our analysis, RAVE was fluctuating between $0.35 and $0.42 on the 15-minute chart.

What’s Driving RAVE’s Rise Today?

The recent rally has been spurred by several new exchange listings, particularly for derivatives and spot trading. Noteworthy platforms such as OKX and Kraken have added RAVE to their offerings.

Moreover, with Bitcoin [BTC] trading below $90,000, many traders shifted their focus to smaller market cap tokens, making RAVE a favored choice by emulating the strategies of larger investors. According to on-chain data, one savvy trader managed to achieve an impressive 83% profit after longing RAVE on launch day. Notably, even after this significant trader realized their gains, the number of people acquiring the token continued to grow.

Data from CoinMarketCap indicated a rising trend in the number of holders since December 12. While this trend has stabilized, the total holder count reached 7,190 at the time of writing, with a market capitalization of $85 million.

RAVE Source: CoinMarketCap

With the market bouncing back from a double bottom and regaining lost trendline support, liquidity levels will play a crucial role moving forward.

How Does Liquidity Impact RAVE?

The liquidation heatmap suggests that despite prices being held between significant orders, bullish anticipation is leaning towards upward momentum. The cumulative long liquidation leverage sits at $5.66 million, while shorts are at $3.15 million.

RAVE Source: TradingView

If RAVE’s price makes a significant upward movement, it could trigger a short squeeze, intensifying the increase. However, the heatmap also indicates that prior instances of cluster triggers typically led to price declines shortly thereafter. Thus, while liquidity has the potential to sway prices in either direction, current trader sentiment leans towards increased bullish activity.