Avantis (AVNT) jumps 24% — Short squeeze could push price toward $0.40
Avantis (AVNT) surged 24.31% in 24 hours and 34.18% over the week, driven by a 74% rise in futures open interest and heavy speculative activity. Despite the rally, the perpetual funding rate was deeply negative, indicating perpetual prices below spot and that longs were receiving funding — a setup consistent with an overcrowded short that could lead to a short squeeze. On-chain and chart signals point to a potential trend shift: AVNT breached a downtrend lower-high at $0.334, daily volume spiked (CoinMarketCap showing a 265% increase), the Chaikin Money Flow rose to +0.22, and the Awesome Oscillator neared a bullish crossover. Liquidity clusters near $0.384–$0.40 make those levels likely short-term targets; a pullback to $0.333 or the $0.30 imbalance could offer buying opportunities. Key resistance targets are $0.38 and $0.48, while a drop below $0.28 would indicate further consolidation. The token has rallied 62% in five days; sustained demand could confirm a multi-week trend reversal, but traders should note that concentrated liquidity and negative funding create both squeeze potential and volatility risk. This is not financial advice.
Bullish
The move is classified as bullish because multiple short-term indicators and market conditions favor further upside. Key supporting points: a 24% one-day rally and 34% weekly gain, a 74% rise in open interest (showing increased leverage and speculative interest), and a deeply negative funding rate (indicating perpetuals are below spot and that shorts may be overcrowded). Price action shows a breach of the downtrend lower-high at $0.334, surging daily volume (CoinMarketCap +265%), positive Chaikin Money Flow (+0.22) and an Awesome Oscillator about to cross bullish — all typical signs of a nascent trend reversal. Short-term liquidity pockets at $0.384–$0.40 are probable targets and could trigger a short squeeze that accelerates upside. Risks and caveats: the negative funding rate and clustered liquidity can also cause sharp mean reversion or volatile unwind (fast pullbacks to $0.333 or $0.30 are possible). A break below $0.28 would invalidate the near-term bullish case and signal further consolidation. In past episodes (e.g., speculative alt squeezes), similar profiles—rising open interest, negative funding, and clustered liquidity—have produced sharp short squeezes followed by rapid retracements. Therefore, traders should treat this as an actionable bullish setup with elevated execution and risk-management requirements: consider scaling entries at $0.333–$0.30, set tight stops below $0.28, and size positions for possible volatility.