Avantis price action has slowed after an impulsive rally, rejecting multiple times at the 0.618 Fibonacci extension around $2.60. Consolidation appears likely, but a bullish pennant may set the stage for continuation toward $3.30.
Summary
- $2.60 Resistance: Multiple rejections at 0.618 Fibonacci extension.
- Pennant Setup: Consolidation forming, breakout target sits at $3.30.
- Open Interest Rising: Confirms demand and supports bullish Elliott Wave 3 continuation.
Over the weekend, Avantis (AVT) experienced a sharp rally, driving price into the 0.618 Fibonacci extension level at $2.60. This region has since acted as a strong resistance, with price failing to break above despite several attempts. Avantis price jumped after its airdrop, boosted by rising investor demand and growing futures market share. The repeated rejections suggest that the impulsive phase of the move has concluded, and the market is now entering a consolidation period.
Avantis price key technical points
- $2.60 Resistance: 0.618 Fibonacci extension tested and rejected multiple times.
- Pennant Formation: Support and resistance converging into an apex zone.
- Upside Target: Breakout projection sits at $3.30.
Following the rejection at $2.60, Avantis is now consolidating in a tight range. This setup mirrors a previous consolidation phase where price coiled into an apex before breaking out into a bullish expansion. The current pattern resembles a pennant formation, a continuation structure that develops when higher lows and lower highs converge.
If the pennant breaks to the upside, the measured-move target points to $3.30, derived from the length of the prior rally leading into consolidation. This target also aligns with the potential completion of a larger Elliott Wave 3 count, where the current correction can be interpreted as a Wave 2 retracement.
Another bullish signal comes from derivatives data. Open interest on Avantis has been rising in tandem with price, indicating that new capital is flowing into the market. This suggests growing demand and reinforces the bullish bias, as traders are willing to commit at higher levels.
When open interest rises with price, it often confirms that momentum is supported by genuine buying interest rather than short-term speculation. Avantis price surged on Sept. 20 as spot and futures volume spiked, reinforcing this dynamic. This trend highlights confidence in Avantis’s long-term growth trajectory.
What to expect in the coming price action
Avantis is currently consolidating below $2.60 resistance, but technicals suggest that this pause is setting up for continuation. A confirmed breakout from the pennant formation could accelerate price toward $3.30, marking the completion of a strong Wave 3 rally.
