AVNT big pump 300% after releasing Overbought signal, correction risk increases

Avantis (AVNT) has soared in price after being listed on several major exchanges at the beginning of this month, reporting at $1.22 on September 16, having once reached an all-time high of $1.57 on the 15th, with a monthly increase of up to 300%. However, with record trading volume and a price pullback, technical indicators have signaled that it is Overbought, and the market may be facing a short-term correction.

Exchange launch drives AVNT pump

AVNT is the native token of the decentralized perpetual trading platform Avantis, which focuses on real-world asset (RWA) trading, built on the Base network, and officially launched on September 9.

Before the Token Generation Event (TGE), the team will distribute 12.5% of the total supply as a fully unlocked airdrop to early users, laying the foundation for token liquidity.

Recently, with major CEX cryptocurrency exchanges successively launching AVNT, market demand has surged sharply, driving prices to break through multiple key resistance levels in just a few days.

Volume surges but price retraces, profit-taking pressure emerges

(Source: Santiment)

After reaching a high of 1.57 dollars, the AVNT price has fallen back to around 1.25 dollars, but the 24-hour volume has skyrocketed to 1.92 billion dollars, indicating that market activity is extremely active.

The phenomenon of “increased volume and decreased price” usually indicates that some early holders are taking profits while new funds are struggling to absorb the selling pressure.

Market analysis suggests that this is a tug-of-war between bullish momentum and unlocking sell-off pressure, with the short-term trend depending on whether buying can continue to support prices.

Technical indicators show short-term correction risk

(Source: Trading View)

The 4-hour chart shows that the Bollinger Bands (BB) have significantly expanded, and the price has touched the upper band, indicating increased volatility and entering the Overbought area.

The Money Flow Index (MFI) has risen above 80, further confirming that buying pressure may be overbought.

If selling pressure continues, AVNT may retrace to the support level of 0.98 dollars. If it falls below this level, the next target may be in the 0.80 dollar range.

Possibility of Bullish Rebound

Despite the rising short-term correction risks, if the bulls maintain dominance during the pullback and demand continues to exceed profit-taking, AVNT still has the opportunity to retest the high of $1.57, and even break above $1.58, opening up a new round of pump.

Conclusion

After AVNT was listed on the CEX exchange, it achieved an astonishing 300% pump thanks to the market narrative of RWA perpetual DEX and high liquidity. However, technical indicators show short-term overbought conditions, and investors need to be cautious of the retracement risk while paying attention to the key support levels of $0.98 and $0.80.