The Key Takeaways
Why has AVNT rallied by 100%?
AVNT benefited by the narrative of perp DEX, triggering 2x return.
Can bulls reverse the 30% recent correction?
The answer is yes, as long as the positive sentiment on the markets continues until the last day of the month.
Avantis [AVNT]The perpetual DEX has doubled in the last few days. Peter Thiel’s Founders Fund and Base are backing the DEX. As traders chased Changpeng Zhao-backed perp DEX, the price of this coin jumped up from $1 to $2. Aster [ASTER].
The perp was still active as of the time this article went to press. segment was up 20% – Underscoring strong risk appetite. Needless to say, this raises the question – Can the appetite reverse AVNT’s recent 30% pullback?
Assessing AVNT’s Recovery Odds
Source: TradingView, AVNT/USD
Binance also fueled the latest AVNT rallies, which started on 19th September. airdrop Its users. Binance gave away 10,000,000 AVNT (or 1% of 1 billion), which sparked further interest.
The perps DEX trading lost its momentum when most tokens reached over 8x their original listing price. AVNT also fell victim to the profits-taking, and its price dropped from $2.6 down to $1.7 before regaining the previous $2 level.
Can bulls regain lost ground? This $1.5 to $1.70 zone appeared to act as a support base and golden ratio, which could help bulls reverse their recent losses.
The recent rise above $1.75 happened only after the centralized exchanges such as OKX announced a listing.
Bulls who are late to the game could get an additional 30% in gains by taking another shot at $2.5 and $2.6.
However, the thesis of bulls would be invalidated if the price dropped below $1.50. This could accelerate sellers’ push to $1.50.
New support for $1.7
Heatmaps for weekly liquidations also support the thesis above. The data showed that the leveraged liquidity was high, and that it could have a positive effect on prices in near-term.
Coinglass
The key price and liquidity magnets are at $2.1 and $2.5, making these targets crucial for the upside.
The lower levels of liquidity are in line with the “golden zone” on price charts. It is possible that the range of $1.5 to $1.70 could act as a major short-term resistance.
Disclaimer: This information is not intended to be a financial, investment or trading advice. It represents the sole opinion of the author.
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Source: ambcrypto.com
