RAVE is up 29%, but is the post-launch correction over yet?

A number of days after its launch, RAVE crypto continues to be climbing the charts. RaveDAO [RAVE]a web3 leisure ecosystem, rose greater than 29% within the final 24 hours as quantity rose 23%.

Value motion reversed from the post-launch correction, however will this uptrend be sustainable amid the short-term shift to small-cap cash?

Is the post-launch value correction over?

RAVE launched on December 14 round $0.50, however instantly entered a correction part to $0.27. Curiously, RAVE reversed from this level on the identical day and recovered $0.50.

The launch hype and the buildup of savvy merchants drove the primary transfer. The value of RAVE was buying and selling above the SuperTrend indicator, however had damaged beneath the rising trendline on the time of writing.

The trajectory confirmed that bulls have been accountable for the value. The Open Curiosity (OI) additionally adopted an identical trajectory with over $17 million on the time of writing.

Supply: TradingView

This shift within the OI course could possibly be a sign of a potential finish to the post-launch correction. Nevertheless, RAVE has fluctuated between $0.35 and $0.42 on the 15-minute chart.

Why is RAVE current at the moment?

Extra inventory trade listings for derivatives and spot buying and selling fueled at the moment’s rally. OKX and Kraken have been among the many standard exchanges that listed RAVE.

Furthermore, merchants switched to small-cap tokens, particularly after Bitcoin [BTC] dropped beneath $90,000. On this manner, merchants switched to RAVE in imitation of good cash.

In reality, on-chain information confirmed one savvy dealer profited 83% after craving RAVE on launch day. On the identical time, the variety of people buying the token continued to extend even after this whale made a revenue.

CoinMarketCap information confirmed that the variety of holders has elevated since December 12. Regardless of this development stabilizing, the full variety of holders on the time of writing stood at 7,19,000, with a market cap of $85 million.

Supply: CoinMarketCap

Now that the market is coming off a double backside and has recovered misplaced trendline help, liquidity could possibly be a deciding issue.

How does liquidity have an effect on RAVE?

The heatmap of the liquidation confirmed that whereas the value was restricted between massive orders, the above ones have been extra concentrated. This was a sign that extra merchants anticipated RAVE to succeed in larger costs.

Cumulative lengthy liquidation leverage was $5.66 million, in comparison with $3.15 million for shorts.

Supply: TradingView

An increase might end in a brief squeeze, which might amplify the rise. Nevertheless, the heatmap indicated that each time these clusters have been activated, there was a subsequent value drop.

It is value noting that whereas liquidity might affect value motion in both course, merchants’ sentiment pointed to extra of an upward transfer.

Remaining ideas

• The RAVE value rose 29% after the launch correction as a result of a rise within the variety of holders, itemizing and capital rotation.
• The liquidity clusters limiting RAVE’s value might trigger a transfer in both course.