The price of Avantis has experienced a remarkable rebound, soaring 73% over the last week and 31.9% in the past 24 hours. Despite this surge, some indicators raise questions about the stability of this uptick. As traders look to the future, here’s what to expect for Avantis.
Whales Remain on the Sidelines
In spite of the recent spike in price, large investors appear hesitant to re-enter the market. A key indicator of whale activity, the Chaikin Money Flow (CMF), remains below zero, signifying that significant portfolios are not accumulating AVNT yet.
Source: TradingView
Historically, the price of Avantis has moved in sync with whale inflows, as demonstrated by its climb to record highs in September coinciding with a positive CMF. However, since the CMF dipped below zero on September 26, the market has faced ongoing selling pressure.
Even though the CMF has shown slight improvement recently, the overall momentum remains weak, undermining the rally’s sustainability. A definitive shift back to positive CMF is essential to restore institutional confidence.
Technical Patterns Hint at Possible Reversal
From a technical perspective, Avantis is attempting to reverse its downward trend. The token has recently broken out of a descending wedge pattern on the 12-hour chart, often indicative of a trend reversal.
The Relative Strength Index (RSI) stands at 52.1, and the MACD histogram is slightly positive at +0.0088, both suggesting a growing bullish momentum. However, caution is warranted as a hidden bearish divergence formed between October 10 and 21, where prices made lower highs while the RSI recorded higher peaks. This pattern could foreshadow weakening upward pressure.
A close above $1.00 would invalidate this bearish setup, indicating stronger buying interest. Until then, traders remain cautious, especially with key support fixed around $0.57.
Growth in TVL and Platform Expansion Fuel Optimism
On a fundamental level, Avantis’s ecosystem is progressing. The total value locked (TVL) in the project recently surpassed $111 million, marking an increase of over 430% in just a month. A significant portion of this growth is attributed to its synthetic asset trading platform on Base Chain, which has attracted new liquidity and users.
Moreover, the development of composable yield products enhances engagement, as the staking and governance features of AVNT are directly linked to network revenue. This surge in TVL signals not only rising adoption but also a stronger underlying demand for the AVNT token, bolstering the platform’s long-term utility amid fluctuating short-term market sentiment.
Exchanges Add Liquidity, but Also Volatility
Recent listings of AVNT on exchanges like Binance, Upbit, and Coinbase have significantly boosted liquidity, with daily trading volumes now exceeding $307 million, approximately 2.4 times its market capitalization. However, such a high turnover rate suggests speculative enthusiasm but also highlights market instability.
Following the listings in September, AVNT soared nearly 400% before correcting by 60% in subsequent weeks. While the current rebound is encouraging, it remains precarious without robust organic demand rather than reliance on short-term trading swings.
Price Outlook for Avantis
In the short term, all eyes are on whether Avantis can sustain momentum above the $1.00 resistance level. Breaking through this threshold could signal the onset of a broader trend reversal, potentially paving the way for $1.32 and eventually the prior all-time high of $2.66.
Conversely, failure to hold above $0.57 may trigger further selling pressure and a retest of lower levels near $0.46.
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