2025-12-29 04:25:33

Recently, I came across an interesting perspective: the recent rebound after Avalanche stabilized at the $12 support level reflects a large-scale rotation from DeFi to traditional financial instruments. This is definitely worth pondering.

Let's look at the current trend. AVAX is still bullish at the $13.09 level, with an RSI of 55.5 indicating that market sentiment is in a reasonable range. The support below is anchored at $12.70, resistance above is at $13.48, and the key breakout level in the middle is $13.35—once this point is broken, the subsequent space will open up significantly. Honestly, climbing from $11 all the way up, this rebound does seem a bit fierce.

However, it’s important to recognize that such rotation cycles often come with considerable volatility. It’s easy to get caught in a trap if you're not careful. The market is chasing new narratives, but risks are also accumulating in the background.

If I had to formulate a trading idea, it would be something like this: try a small position around $13.09 to test the waters; once it breaks above $13.35, consider adding to the position. Set the stop-loss at the $12.70 line, and target profits at $13.48. Of course, all this is based on the current market structure remaining unchanged—any new negative news should prompt an immediate adjustment of the strategy.

How far the rotation from DeFi to traditional banking finance can go in the short term is unpredictable. But this signal is worth paying close attention to.

AVAX-0,62%

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SlowLearnerWang

· 12h ago

Talking about rotation again, every time I hear that word I react half a beat late. That $13.35 level sounds good, but I'm a bit afraid of buying at the high haha. Is DeFi really going to embrace traditional finance? It feels a bit surreal. Forget it, I'll wait for the drop before making a move. I'm destined to buy the dip. The rotation cycle comes with volatility, that's true, but I'm just prone to getting caught, used to it. I've noted the $12.70 support line, at least I know when to run. This rebound was quite fierce. By the time I realized it, it was probably already over.

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LiquiditySurfer

· 12h ago

Rotational narratives are back again. Is it really the same old story this time? Feels like every wave is about a new story, but in the end, we're still caught. --- AVAX is really aggressive this time, but whether it can break through the $13.35 barrier still depends. --- DeFi shifting towards traditional finance? Ha, those institutions have already been laying out their plans. We're retail investors only catching up now. --- Stop-loss at $12.70 is reliable, but I'm just worried that a piece of bad news in the middle of the night could cause a sudden plunge. --- Entering a light position at $13.09 is okay, but it feels like this rebound might be the end. Who dares to bet on what comes next? --- It's rotation again, new narratives again. Every time it's said like this, it ends up crashing down. I'm exhausted. --- RSI at 55.5 is neutral, indicating that the market sentiment hasn't picked up yet. This rebound might be fake. --- Only follow through after breaking $13.35. This strategy is stable but a bit conservative, making it easy to chase the high.

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DeadTrades_Walking

· 12h ago

Another $13.35, a magical number that gives me a headache. I've been trapped too many times. Switching to traditional finance? Uh, I think it's more like wealthy big players are just harvesting the little guys. AVAX's rebound this time is indeed fast, but it seems no one cares about the risks. If the $12.70 level can't hold, it's time to run. It's not worth gambling. I'm already tired of the DeFi story; the next narrative is still unknown. Let me ask, how long can this cycle really last? Honestly, no one really knows. Stop-loss always comes first; everything else is just empty talk.

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LiquidationHunter

· 12h ago

The idea of testing with a small position is good, but I think the logic of DeFi rotation is a bit虚. Truly, the funds have all flowed into CeFi. --- $13.35 is indeed a关键线; if broken, it will be interesting, if not, we still have to wait. --- Honestly, I don't quite understand this rebound; it feels like funds are just炒概念. Waiting for big V to布局完 then follow might be safer. --- Setting a stop loss at $12.70 is still a bit紧; I usually leave more buffer, otherwise a滑点穿过就玩了. --- DeFi rotation towards traditional finance? When did that start? I don't feel it, maybe my information is too滞后. --- Climbing from $11 to here is indeed猛; just worried that those who bought at high levels will get暴砸 again. --- I've seen too many of these analyses; in the end, it's always韭菜被割. I'll see if there are other opportunities. --- Follow with a small position at $13.35; I get this idea, just怕又来个黑天鹅事件, this market really can't handle much more.

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SchrodingersFOMO

· 12h ago

The suggestion to try a small position sounds reliable, and the $13.35 level is indeed a point of interest, but I always feel that no matter how beautiful the words are, they can't withstand a black swan event. DeFi turning into banking tools? I don't quite understand, can traditional financial instruments really compare to DeFi returns? Really? Can $12.70 really hold? I never believe in support levels that have been broken once. Wait, is this rebound really fierce or a trap? Why does it all feel the same narrative? Break $13.35 and go all in, or just don't play at all. Wasting time is the easiest way to get eaten. I've heard the idea of risk accumulation a hundred times, but why can't I stop wanting to buy in?

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