RAVE crypto defends $10 support, can bulls push to a new high?

4 hours ago 1

RAVE crypto crashed over 44% to nearly $10 earlier today before backpedalling on some of its losses as investors bought the dip.

Summary

RaveDAO surged over 5,300% to a $19.54 all-time high before crashing nearly 45% to $10, as profit-taking followed a massive short squeeze.
The token has since rebounded nearly 50% to around $15, with rising futures open interest and improving funding rates signaling strong bullish positioning.
Exchange outflows and bullish technical indicators suggest RAVE could attempt another rally toward a new high above $20.

According to data from CoinGecko, RaveDAO (RAVE) price skyrocketed over 5,300% this week to an all-time high of $19.54 on Wednesday, becoming the best-performing crypto asset among the top 100 cryptocurrencies across daily, weekly, and monthly timeframes.

The token price rose due to a massive short squeeze triggered by a sudden surge in social media engagement and speculative retail interest. As prices rose higher, short sellers were forced to liquidate their positions, which added further fuel to the upward momentum and created a feedback loop of buying pressure.

It was also supported by the recent listing of RAVE on several secondary exchanges, which significantly boosted liquidity and accessibility for new traders.

Following the sharp rally, the token fell nearly 45% to near $10 as investors booked profits following the massive surge. It is quite common for investors to book some profits, especially after such an unprecedented vertical move that left the asset in overbought territory.

As of press time, the token has rebounded by nearly 50% back to $15, raising eyebrows over whether bulls are attempting to push the token to a new all-time high.

A look at the token futures market seems to suggest that market conviction remains incredibly high despite the volatility. Notably, the total futures open interest of the token rose over 30% to $470 million in the past 24 hours. This suggests that a majority of traders are leaning towards bullish bets, likely expecting the price to recover amid recent U.S. Iran war ceasefire news, which has improved overall market sentiment.

At the same time, the weighted funding rate of the token is exiting the red zone, a sign that the extreme bearishness of short sellers is fading and long positions are becoming more attractive again.

On the spot market, nearly over $7 million was withdrawn from exchanges over the past day. This means that investors were likely moving their holdings to their cold wallets, likely expecting further price appreciation and intending to hold for the long term.

Amidst these developments, its price action charts also seem to hint that the token is preparing for its next height, potentially to a new all-time high above $20.

On the 4-hour chart, RaveDAO price was trading above all of the simple moving averages. This means the immediate trend remains firmly bullish. At the same time, the MACD lines are drawing closer to a bullish crossover, which would confirm that the temporary correction has ended and the next leg of the rally is beginning.