Why did the Avantis Price Increase by 50? | Credit: Hameem Sarwar
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Key Takeaways
Avantis (AVNT) has created a double bottom pattern.
The Avantis price broke out from a diagonal resistance.
Will Avantis continue increasing or will it break down?
While the crypto market has plunged today, Avantis bucked the trend by creating a bullish pattern and breaking out from its corrective trend line.
The breakout is a positive sign, but the price has failed to sustain the rally and has deviated above its primary horizontal resistance.
Unless Avantis reclaims this horizontal resistance, it will mean that the trend is bearish and new lows are likely.
Let’s look at the charts and figure out what lies ahead the rest of the year.
Avantis Creates Bullish Pattern
The Avantis price fell by more then 80% after reaching its all-time high of $2.68 on Sept.22, culminating with a low of $0.47 on Oct. 20.
A descending resistance trend line contained the downward movement, preventing any breakout attempts during the plunge.
However, the resistance trend line eventually gave, since the AVNT price broke out from it today, surging by 50% to a high of $0.80.
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Even though the rally is significant, so was the preceding downward movement. As a result, the AVNT price has yet to reach any of its main horizontal or Fibonacci resistance levels.
In fact, it is a long way from doing so, since another 50% price increase will take the Avantis price to the 0.382 Fibonacci retracement resistance at $1.32.
Perhaps the most bullish sign for the Avantis price is the double bottom pattern that has been created between Oct. 10 and 17.
The pattern was combined with bullish divergences in the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD), supporting the Avantis price increase.
With bullish indicator readings and price action, the Avantis analysis suggests the rally still has room to run.
Why is Avantis Going Up?
While the long-term movement looks bullish, zooming in on the structure creates doubt as to whether the rally will continue.
This is because Avantis has completed an A-B-C structure (green) during the double bottom.
As a result, the entire bounce is over, since wave C had 1.61 times the length of wave A.
If this is the case, the Avantis price has currently reached its local top and the coin will continue moving downward in the near future.
Unclear Trend Ahead
Avantis may have shown strength with its breakout and double bottom formation, but the rejection at resistance puts the rally into question.
The bullish signals on the RSI and MACD suggest some upside potential remains, yet the wave count points toward a corrective bounce rather than a trend reversal.
If AVNT fails to reclaim the $0.68 horizontal resistance, the bearish outlook will transpire, likely leading to lower lows.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
