RaveDAO’s RAVE token has delivered one of the most aggressive moves in recent memory.
In just 24 hours, the coin has surged more than 250%, extending its already explosive weekly rally of roughly 3,561%.
The price action has caught many traders off guard, especially since the broader crypto market has not shown similar strength.
What makes this move stand out is not just the size of the rally, but how fast it happened.
RAVE climbed from below $2 into fresh highs at $9.79 within days, creating a sharp vertical trend that shows little sign of gradual buildup.
What triggered the sudden surge?
The main force behind RAVE’s rally appears to be an extreme imbalance in the derivatives market.
Reports suggest that a large portion of traders were positioned short, betting that the price would fall.
However, instead of dropping, RAVE started to climb aggressively.
As the price moved upward, short positions began to get liquidated. This forced traders to buy back the token at higher prices to cover their positions.
That buying pressure then pushed the price even further up, triggering another wave of liquidations.
This created a feedback loop where rising prices led to more forced buying, and more forced buying led to even higher prices.
The result was a fast-moving squeeze that accelerated the token’s upside in a very short period.
At the same time, the market structure played a major role.
RAVE has a relatively thin trading float compared to its total supply, meaning there is not a large amount of freely traded liquidity available at any given time.
When liquidity is thin, even moderate buying pressure can create exaggerated price swings.
In this case, it helped amplify the squeeze and made the rally much more aggressive than normal market conditions would allow.
Short squeeze fuels aggressive momentum
As the squeeze developed, trading activity surged sharply.
Volume spiked into hundreds of millions within a 24-hour window, showing just how intense the rotation of capital became during the move.
This type of volume is often seen during forced market events rather than steady long-term buying.
Traders were not slowly accumulating positions; instead, they were reacting to rapidly changing prices and liquidation pressure.
Another sign of overheating momentum is the extreme technical condition the token reached during the rally.
Indicators such as the Relative Strength Index (RSI) moved into deeply overbought territory, signalling that the pace of buying had far exceeded normal market levels.
Despite this, momentum remained strong, partly because traders continued to chase the move.
Once a squeeze reaches this stage, it often becomes self-reinforcing, as late buyers enter the market expecting continuation, adding more fuel to the trend.
How high can RAVE climb?
The next phase of RAVE’s movement will likely depend on whether it can hold key support zones created during this squeeze.
At the moment, the most important level to watch is around $6.00. If the price stays above this area, momentum could remain strong enough for another push higher.
In that case, traders could target the $10 to $12 range, especially if bullish sentiment continues into upcoming event dates.
The recent all-time high near $9.79 will also act as a key reference point. A clean break above that level could extend the rally into new price discovery territory.
On the downside, losing the $6.00 level would be an early warning sign that momentum is fading.
If that happens, the market could quickly unwind, with prices potentially sliding toward the $4.00 region as leveraged positions begin to unwind.
The post RAVE coin jumps 250% today, extends 3,500% weekly rally: here’s why appeared first on Invezz
