A few days after launch, and RAVE crypto is still rising on the charts. RaveDAO [RAVE], a web3 entertainment ecosystem, spiked by more than 29% in the past 24 hours as volume jumped 23%.
The price action reversed from the post-launch correction, but will this uptrend be sustainable amid the short-term shift to small-cap coins?
Is the post-launch price correction over?
RAVE launched on the 14th of December at around $0.50, but immediately entered a correction phase to $0.27. Interestingly, on the same day, RAVE reversed from this point and reclaimed $0.50.
Launch hype and smart traders’ accumulation drove the initial move. RAVE’s price was trading above the SuperTrend indicator, but had broken below the rising trendline at press time.
The trajectory showed bulls were in control of price. The Open Interest (OI) was also following a similar trajectory at more than $17 million when writing.
This shift in OI direction could be an indication of a potential end to the post-launch correction. RAVE was, however, ranging between $0.35 and $0.42 on the 15-minute chart.
Why is RAVE up today?
More exchange listings for derivatives and Spot trading fueled this day’s rally. OKX and Kraken were among the popular exchanges that listed RAVE.
Additionally, traders were shifting to small-cap tokens, especially after Bitcoin [BTC] dropped below $90,000. That way, traders rotated to RAVE in emulation of smart money.
In fact, on-chain data showed a smart trader profited 83% after longing RAVE on the day of launch. At the same time, the number of individuals acquiring the token continued to increase even after this whale took profit.
The data from CoinMarketCap showed that the number of holders has been rising since the 12th of December. Despite this trend stabilizing, total holders stood at 7.19K at press time, with a market cap of $85 million.
As the market comes from a double bottom, having recovered the lost trendline support, liquidity could be a deciding factor.
How will liquidity affect RAVE?
The liquidation heatmap showed, despite the price being confined in between massive orders, that the one above was more concentrated. This was an indication that more traders were anticipating RAVE to hit higher prices.
The cumulative long liquidation leverage was at $5.66 million, compared to $3.15 million for shorts.
A move higher could result in a short squeeze, which would amplify the rise. However, the heatmap indicated that every time these clusters were triggered, a price decline occurred afterward.
It is worth noting that while liquidity could influence price movement in either direction, trader sentiment indicated that more bets were placed on an upward movement.
Final Thoughts
- RAVE price rallied 29% after the launch correction due to an increase in holders, the exchange listing, and capital rotation.
- The liquidity clusters confining the price of RAVE could spark a move toward either of the directions.
