Understanding Avantis Token’s Impressive Weekly Performance
The decentralized exchange (DEX) token market may have seen its share of volatility, but Avantis Token (AVNT) is showing remarkable resilience. Over the past week, AVNT has surged an incredible 62%, with a 22% spike in just the last 24 hours alone. This significant rally is driven by both technical market factors and robust network activity.
Breaking Through the Bearish Trend
For more than a month, AVNT’s price followed a bearish structure, but that changed recently. Following a steep correction after the crypto market liquidations in mid-October, AVNT broke past its descending resistance line and its 50-day Simple Moving Average (SMA). This bullish move was supported by a Relative Strength Index (RSI) divergence at 68, signaling strong buying momentum.
Since the breakout on December 19, AVNT has consistently set higher highs and higher lows. One key moment occurred on Christmas Day, when the token rebounded sharply from $0.32, maintaining its hold above the 50-day SMA. However, the $0.40 resistance zone – an accumulation zone recorded nearly a month ago – remains a psychological barrier for further gains. Breaking past $0.40 could set AVNT on course to hit $0.60 or higher, but a drop below the SMA could negate the bullish momentum.
How Network Activity Supports Price Gains
Price rallies alone are rarely sustainable without solid on-chain fundamentals, and AVNT’s performance is no exception. According to Avantis Analytics, total trades hit a weekly high of 3.77 million on December 26, with daily volumes reaching around $56 billion. Among these trades, approximately $900 million reflected long positions compared to $200 million in shorts, underscoring bullish sentiment.
Holder participation has also been on the rise, with over 109,800 holders reported – an increase of more than 26,000 within the month, according to Token Terminal. The stable circulating supply of 258.2 million tokens, coupled with rising turnover rates, further explains why AVNT has gained traction among market participants.
Challenges Ahead for AVNT
While AVNT has flipped its mid- and long-term market structure to bullish, the broader crypto market’s potential weakness poses a hurdle to sustained growth. Investors should carefully monitor overall market trends before defining long-term positions in the token.
Invest in AVNT With the Right Tools
If you’re considering entering the cryptocurrency space, tools like the Ledger Nano X offer an excellent way to securely store your digital assets. With hardware wallet protection, you can trade tokens like AVNT confidently, knowing your investments are safe.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Cryptocurrency trading carries risk; always do your own research before making investment decisions.
