A sustained dip below $1.5 would reduce the recovery odds.
Key Takeaways
Содержание статьи:
Why did AVNT rally by +100%?
AVNT benefited from the perp DEX narrative, triggering 2x returns.
Can bulls reverse the recent 30% correction?
Yes, if positive market sentiment prevails until the end of the month.
Avantis [AVNT], a perpetual DEX, doubled its gains over the past few days. The DEX is backed by Peter Thiel’s Founders Fund and Base. It jumped from $1 to $2.4 as traders 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 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: AVNT/USD, TradingView
The latest AVNT rally, which began on 19 September, was also fueled by the Binance airdrop to its users. About 10 million AVNT, or 1% of the total supply (1 billion), was given to Binance users, sparking further interest.
However, the perps DEX trade lost momentum after most tokens hit over 8x returns from their listing price. AVNT was also caught in the profit-taking and dropped by over 30% from $2.6 to $1.7, before reclaiming the $2-level at the time of writing.
Can bulls regain lost ground? Well, the $1.5-$1.7 zone seemed to be doubling as a golden ratio and crucial support and could form a base for bulls to reverse recent losses.
In fact, the recent rebound above $1.7 happened after centralized exchanges like OKX announced a listing.
Another shot at $2.5 or $2.6 could offer extra 30% upside gains for late bulls.
However, a sustained dip below $1.5 would invalidate the bullish thesis and accelerate sellers to push towards $1.
A new support at $1.7?
The aforementioned thesis can also be supported by the weekly liquidation heatmap. In fact, data revealed that there was considerable leveraged long liquidity at $1.7, something that could act as a price magnet in the near term.
Source: Coinglass
On the upside, key liquidity pools and price magnets were at $2.1 and $2.5, making them crucial upside targets.
Put simply, the lower liquidity seemed to align with the golden zone on the price charts. This could make the $1.5-$1.7 range a key short-term support.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Next: Whales are bullish on AVAX, but is the current rally just hype?
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