Recently, Avantis (AVNT) has suddenly become the focus of the market. As of the time of writing, AVNT has surged approximately 24% in the past 24 hours and over 34% for the week, showing a strong trend. At the same time, the open interest in the futures market has increased by 74%, indicating that a large amount of capital is entering the market for speculation, with a high level of short-term trading enthusiasm.

However, it is important to note one detail: the financing rate is negative. Simply put, this means that those who go long have to pay, indicating that the perpetual contract price is lower than the spot price. This situation often suggests that too many short positions have been piled up, and once the price continues to rise, it may trigger a "short covering," pushing the price to surge again in the short term.

From a broader trend perspective, AVNT initially surged to a historical high of $2.64 when it was launched, but then fell sharply, currently down about 87% from its peak. However, now some signs indicate that the downtrend may be coming to an end. On the daily chart, the price has returned to a key position, and the trading volume has been continuously increasing, indicating that capital is beginning to seriously position itself rather than just small retail investors casually trading.

Data also supports this: the trading volume in the last 24 hours has skyrocketed by 265%, and the capital inflow indicator has significantly turned positive, indicating that buying pressure is gaining the upper hand. Overall, both technical indicators and trends are leaning towards "the trend is warming up."

In the short term, the area around $0.38–$0.40 is an important zone where a lot of stop-loss and liquidation orders are piled up, and the price is likely to "take a touch" there first. However, it is also normal to see a pullback after a surge.

If a pullback occurs, around $0.33 or even $0.30 may be the support area that short-term capital is focusing on. If it can stabilize afterwards, the market target may look towards $0.38 or even $0.48. But if it breaks below $0.28, it indicates that a longer period of consolidation is needed.

In summary: AVNT is very hot in the short term, but the volatility will also be large, so beginners should not chase the highs and should focus on pullbacks and support levels.