Avantis – Assessing key drivers of AVNT’s 62% weekly rally
Can Avantis hit $0.60 as its next target?
The DEX battle might have cooled off, but Avantis seems to have regained its flair.
In fact, Avantis [AVNT] climbed by more than 22% in the last 24 hours alone, extending its weekly gains to 62%. While the new DEX token has been bullish, others like AsterDEX (ASTER) have struggled on the price front.
Avantis flips market structure to bullish
On the price charts, Avantis broke the bearish structure that had been in place for more than a month. The price correction of AVNT started immediately after 24 October, two weeks after the massive liquidations that affected the entire crypto sector.
AVNT’s price breached the descending resistance alongside the 50 SMA. This indicated that the direction had changed, coinciding with the bullish reading of 68 for the RSI divergence.
Since the price breakout on 19 December, AVNT has been making higher highs and lows. The altcoin bounced off $0.32 on Christmas Day – Above the 50 SMA.
However, the altcoin was facing slight resistance around the $0.40 -one. This because the $0.40-level was previously an accumulation zone, approximately a month ago.
Breaking above $0.40 would set AVNT up for a move towards $0.60 or higher. Conversely, a breakdown of the moving average would negate the prevailing bullish trend.
Now, while the technical breakout drove the move, network activity also contributed to the same.
A sign of resilience?
According to data from Avantis Analytics, the total trades count hit a weekly high of 3.77 million on Boxing Day. On the day, about 15,272 trades had already been made.
The cumulative volume has also been following a similar trajectory – About $56 billion at press time. The total was about $1.2 billion, with more than $900 million accounting for longs while about $200 million went for shorts.
On the participants’ side, holders were also on the rise as per data from Token Terminal. The total number hit 109.8k, hiking by more than 26k in about a month. This hike indicated that bulls might be returning to trade the token. Hence, the uptrend.
The circulating supply has also stayed flat since the beginning of October – Around 258.2 million. This meant that the supply was limited. The token turnover for the fully diluted value was also up 49.6% and 192% for the circulating supply.
Taken together, network activity further explained why AVNT price was up, surpassing earlier predictions by the AMBCrypto team.
Technically, AVNT has flipped the structure to bullish on both the mid-term and long-term charts. However, the broader market weakness could be a hurdle for sustained price appreciation.
Final Thoughts
- AVNT’s price extended its weekly gains to more than 62%, flipping the altcoin’s bearish price action.
- The technical breakout, rising holders, and network activity drove AVNT’s rally on the charts.
