Can AVNT Recover? Analyzing Avantis

The cryptocurrency market is no stranger to sharp reversals, and Avantis (AVNT) is the latest token to undergo this cycle. After an impressive run-up that drew attention across DeFi communities, AVNT faced a sudden 15.6% correction. 

The price slide has ignited debate among traders: Is this the beginning of a deeper decline, or merely a reset before another leg higher?

At the heart of this question lie three critical factors: ongoing selling pressure from airdrop recipients, whale wallets absorbing supply, and momentum shifts visible on technical indicators like the Relative Strength Index (RSI). 

In this article, we’ll take a deep dive into these dynamics, outline the key price levels to watch, and explore whether AVNT has the structural support it needs to recover in the near term.

Short-Term Recovery Signals

AVNT’s immediate challenge is navigating the aftermath of its sharp pullback. On-chain and exchange data highlight a surge in inflows, signaling that holders particularly those who received tokens via airdrops have been actively booking profits. 

Airdrop distributions often create waves of sell pressure because recipients have little cost basis and strong incentive to cash out.

Despite this, AVNT has not collapsed. The reason lies in the actions of mega whales, large wallets that have stepped in to absorb nearly the same volume being sold. 

This accumulation has prevented cascading losses and suggests that influential players remain committed to defending price ranges. Such behavior often acts as a stabilizing force in volatile market conditions.

This battle between sellers and whales has created a range-bound environment, where AVNT’s next decisive move will be dictated by which group maintains momentum.

Read Also: What is Avantis? A Complete Guide

RSI Divergence and Whale Absorption

Technical indicators provide further context to AVNT’s precarious position. On the 1-hour chart, a bearish RSI divergence emerged when prices reached higher highs while the RSI indicator made lower highs. This warned of fading momentum, and the correction that followed confirmed the signal’s accuracy.

Yet, instead of spiraling lower, AVNT found support largely due to whale absorption. This prevented the correction from escalating into panic selling. Interestingly, a new signal has since developed: a hidden bullish RSI divergence. 

In this setup, RSI registers lower lows while price action maintains higher lows, implying that although momentum looks weaker on the surface, buyers are still in control.

Such hidden divergences often precede reversals, especially when reinforced by whale accumulation. This suggests that while the token remains vulnerable, there is still a window for recovery if accumulation persists and broader sentiment improves.

Read Also: The Avantis ($AVNT) Airdrop Season 3: What You Need to Know

Key Price Levels to Watch

Price thresholds act as battlegrounds between bulls and bears, and for AVNT, the following levels are crucial:

• Bullish Breakout – $1.25: A sustained close above this resistance on the 4-hour timeframe would confirm renewed momentum. From here, AVNT could retest its previous highs around $1.49, with the potential for even higher extensions if momentum accelerates.

• Critical Support – $1.04: This is the line in the sand for bulls. Losing this level would invalidate the bullish structure, likely triggering a deeper correction toward $0.85 and $0.70.

These zones are not just numbers; they represent collective psychology. Traders eyeing breakouts will pile in above $1.25, while panic may intensify below $1.04. For now, AVNT trades in between, waiting for the next decisive move.

Market Structure and Sentiment

Beyond short-term indicators, the broader structure of AVNT remains cautiously bullish. Momentum trackers like the bull-bear power indicator show that bulls still retain control, though their advantage is thinning. 

This flattening trend suggests that while the market hasn’t turned outright bearish, enthusiasm is cooling.

The decisive factor remains the standoff between airdrop sellers and whale accumulators. If whales maintain their defensive stance, AVNT could build a base for recovery. 

But should selling pressure intensify particularly if early investors or smart money begin trimming larger positions the balance could quickly tip bearish.

Read Also: Avantis (AVNT) Price Analysis: Touching $100M Market Cap

Whale Strategies and Market Psychology

Whales are not merely price defenders; they are strategists. Absorbing supply during corrections serves multiple purposes:

• Accumulation at discount: By buying during pullbacks, whales secure positions at favorable prices.

• Price defense: Defending key levels prevents panic selling and maintains confidence among retail traders.

• Liquidity trap: Absorption can later fuel sharp rallies, forcing short sellers to cover positions.

For smaller traders, this dynamic often creates confusion is the defense genuine, or just a setup for future distribution? Regardless, whale behavior remains one of the strongest drivers of AVNT’s near-term outlook.

AVNT in the DeFi Ecosystem

Avantis is not just another speculative token; it underpins a platform focused on structured financial products in DeFi. This niche is gaining traction as protocols look to replicate traditional finance instruments like derivatives, but on-chain. As competition grows, AVNT’s performance may increasingly be tied to the success of its platform.

In this context, short-term price action is influenced by traders, but long-term sustainability will hinge on whether Avantis can capture real utility and adoption. Projects that fail to transition from speculative hype to genuine use cases often see their tokens fade over time.

Read Also: How to Buy Avantis (AVNT)

AVNT Recovery Summary Table

Conclusion

AVNT’s recovery remains possible, but fragile. The presence of whales absorbing nearly 50 million tokens highlights confidence from large players, while hidden bullish RSI signals point to waning sell pressure. Still, risks are undeniable. 

Ongoing airdrop selling continues to weigh heavily on price action, and if $1.04 fails to hold, the bullish thesis collapses.

For now, AVNT sits at a crossroads. Traders should monitor whale activity, RSI momentum, and key support levels closely before committing to directional bets. The next 24–48 hours will be crucial in determining whether AVNT regains its bullish footing or slides deeper into correction territory.

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FAQ

What is AVNT (Avantis)?

AVNT is the governance token of Avantis, a DeFi platform specializing in structured financial products and derivatives trading.

Why did AVNT drop recently?

The token corrected after a sharp rally due to profit-taking, especially from airdrop recipients, and a bearish RSI divergence.

Can AVNT recover soon?

Recovery is possible if whale accumulation persists and RSI divergences play out, but downside risks remain if $1.04 breaks.

What price levels are most important?

A breakout above $1.25 could push AVNT higher, while a fall below $1.04 risks deeper corrections to $0.85 or $0.70.

Are whales buying AVNT?

Yes. Whale wallets absorbed nearly 50 million tokens during the correction, signaling strong interest in defending price levels.

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