Is Avantis (AVNT) Poised for a $0.40 Rebound Following a Volatile 24-Hour Rally?

The recent 24-hour rally in Avantis (AVNT), which saw the token surge 40.66% to $0.573387 as of December 26, 2025, has sparked renewed interest in its potential trajectory. With the price currently trading above $0.40, the question of whether AVNT can sustain momentum or face a pullback to this critical support level remains central to its investment thesis. This analysis examines technical and on-chain momentum indicators to assess the likelihood of a $0.40 rebound, drawing on recent price action, market structure, and protocol-level developments.

Technical Analysis: Mixed Signals Amid Volatility

The technical landscape for AVNT presents a nuanced picture. On the daily chart, the Relative Strength Index (RSI) sits at 40.1, placing the token in a neutral zone, while the Moving Average Convergence Divergence (MACD) also shows no clear directional bias according to technical analysis. This suggests a lack of strong conviction in either bullish or bearish momentum. However, the 14-day Average True Range (ATR) of 18.9% of the current price highlights the token's inherent volatility, indicating sharp price swings could persist according to technical analysis.

Short-term optimism emerges from the hourly chart, where AVNT's RSI climbed to 55.9-a neutral-to-bullish reading-and the price held above key exponential moving average (EMA) levels, signaling a potential uptrend according to technical analysis. The lower ATR of 1.8% on this timeframe suggests reduced volatility in the immediate term, which could allow AVNT to consolidate gains. Crucially, the 20-day EMA ($0.5606) and 50-day SMA ($0.7220) remain mixed, with the former acting as a support level and the latter as resistance according to technical analysis. If AVNT fails to break above the SMA, it may face renewed downward pressure toward the $0.40 level.

On-Chain Momentum: Utility Growth vs. Accumulation Concerns

On-chain metrics reveal a duality in AVNT's narrative. The protocol's Total Value Locked (TVL) surpassed $100 million in late 2025, driven by strategic initiatives like AVNT staking, which offers 20% APR to incentivize participation according to latest updates. This utility-driven growth, coupled with a spot listing on Coinbase and increased accessibility via platforms like Robinhood according to price prediction, has boosted TVL and daily trading volume to $240 million according to Coinbase price data. Such developments suggest AVNT's ecosystem is maturing, which could underpin long-term value.

However, whale activity remains a concern. The Chaikin Money Flow (CMF) has remained negative since September 2025, indicating weak accumulation by large investors despite the token's 38% weekly surge in late December according to price analysis. This divergence between retail-driven price action and institutional inactivity raises questions about the sustainability of AVNT's rally. Additionally, a Sybil attack during an airdrop-where one entity allegedly claimed $4 million in AVNT via 300+ wallets-has cast shadows over the token's distribution fairness according to latest updates.

Support/Resistance Dynamics and Rebound Potential

The $0.40 level is a critical psychological and technical support point for AVNT. Historical data shows the token has tested this level multiple times, with a 6% daily gain recorded in late November 2025 despite broader DeFi sector outperformance according to price data. Current support levels are clustered at $0.48, $0.44, and $0.40, with the latter acting as a floor for potential rebounds according to crypto news.

If AVNT's price drops below $0.50, the $0.40 level could become a pivotal battleground. A successful hold above this level would likely trigger a short-term rebound toward $0.60, as bullish momentum indicators like the MACD and RSI have shown recent strength according to price analysis. However, a breakdown below $0.40 could expose deeper support at $0.334 and $0.30, levels that have historically correlated with bearish sentiment according to market analysis.

Conclusion: A Tenuous Path to $0.40

Avantis (AVNT) faces a delicate balance between bullish catalysts and structural headwinds. While the token's technical indicators on shorter timeframes and TVL growth suggest resilience, the absence of whale accumulation and lingering on-chain risks-such as the Sybil attack-pose significant challenges. The $0.40 level remains a key focal point: a rebound here would require sustained buying pressure and a reversal in CMF trends, while a breakdown could signal a broader correction. Investors should monitor AVNT's ability to hold above $0.40 and the evolution of its TVL, as these metrics will likely dictate its near-term trajectory.