Deep Dive
1. Profit-Taking After Rally (Bearish Impact)
Overview: AVNT surged 62% in the week ending 28 December 2025, driven by a technical breakout above its 50-day SMA and rising holder counts (up 26k in a month). The 24h dip reflects profit-taking after this rally, with $1.2B in cumulative trading volume during the surge (AMBCrypto).
What this means: Short-term traders likely exited near the $0.40 resistance, a former accumulation zone. The RSI at 51.18 (neutral) and MACD histogram at +0.005 signal fading momentum.
What to watch: Sustained closes above $0.40 could reignite bullish sentiment.
2. Technical Resistance at $0.40 (Mixed Impact)
Overview: AVNT faced repeated rejections at $0.40, a level that capped prices in late December. Fibonacci retracement data shows this aligns with the 23.6% level ($0.387) from its September 2025 swing high.
What this means: This zone has become a psychological barrier. Failure to breach it eroded confidence, triggering stop-loss orders and liquidations. Derivatives data shows $200M in short positions as of 28 December, amplifying downside pressure.
3. Altcoin Sentiment Drag (Bearish Impact)
Overview: Bitcoin dominance rose to 58.6%, while the CMC Altcoin Season Index remains in "Bitcoin Season" (score: 23). Total crypto market turnover fell 22.49% in 24h, reflecting reduced liquidity for altcoins like AVNT.
What this means: Traders rotated into BTC amid neutral market sentiment (Fear & Greed Index: 42). AVNT’s 24h volume dropped to $33.4M (-22.5%), exacerbating volatility.
Conclusion
AVNT’s minor 24h dip stems from localized profit-taking and resistance struggles, compounded by a risk-off tilt toward Bitcoin. While its mid-term technical structure improved recently, reclaiming $0.40 is critical for momentum.
Key watch: Can AVNT hold above its 7-day SMA ($0.367) to avoid a retest of $0.30 support? Monitor BTC dominance and AVNT’s derivatives funding rate (-0.0049%), which may signal short-squeeze potential.