RaveDAO saw extreme volatility on Thursday, plunging more than 44% to nearly $10 before rebounding as dip buyers stepped in.
Summary
RAVE surged over 5,300% to an all-time high of $19.54 before crashing करीब 45% to $10 amid profit-taking after a short squeeze.
The token has since bounced nearly 50% to around $15, supported by rising futures open interest and improving funding rates.
Exchange outflows and bullish technical signals indicate a possible move toward a new high above $20.
Massive rally followed by sharp correction
According to CoinGecko data, RaveDAO skyrocketed over 5,300% this week, briefly becoming the top-performing crypto asset among the top 100 tokens across multiple timeframes.
The rally was largely driven by a powerful short squeeze fueled by surging social media hype and speculative retail demand. As prices climbed, short positions were liquidated, accelerating the upside through a feedback loop of forced buying.
The momentum was further boosted by new listings on secondary exchanges, which improved liquidity and accessibility for traders.
However, after hitting an all-time high of $19.54, the token sharply corrected, falling nearly 45% to around $10 as investors locked in profits following the vertical surge—an expected move after such overextended conditions.
Strong rebound signals bullish intent
At the time of writing, RAVE has recovered close to 50%, trading near $15. The sharp rebound has reignited speculation about whether bulls are preparing for another push toward new highs.
Derivatives data suggests strong market conviction. Futures open interest has jumped over 30% to $470 million in the past 24 hours, indicating growing bullish positioning among traders.
Meanwhile, the weighted funding rate is moving out of negative territory, signaling that bearish pressure is easing while long positions are gaining traction.
On-chain and technical signals align
Spot market activity also supports a bullish outlook. More than $7 million worth of RAVE has been withdrawn from exchanges over the past day, suggesting investors are shifting holdings to private wallets in anticipation of further gains.
From a technical standpoint, the token remains in an uptrend. On the 4-hour chart, RAVE is trading above all major simple moving averages, reinforcing bullish structure. Additionally, the MACD indicator is approaching a bullish crossover, which could confirm the end of the recent pullback and signal the start of another upward leg.
What’s next?
If momentum holds, RAVE could attempt to retest its all-time high and potentially break above the $20 level. However, given the recent volatility, traders should remain cautious as sharp swings remain a defining feature of the asset’s price action.
