Avantis: Exploring the Key Drivers Behind AVNT's Remarkable 62% Weekly Surge

Avantis (AVNT) has captured attention by increasing its value significantly, with a 62% rise over the past week alone. This movement comes amid a generally stagnant decentralized exchange (DEX) market, reflecting strong interest in AVNT.

Key Takeaways

Remarkable Growth: AVNT has surged by over 62% weekly, with a 22% increase in just 24 hours.
Market Structure Shift: The price of AVNT shifted from a bearish to a bullish structure after overcoming key resistance levels.
Increased Trading Activity: Significant trading volume and an uptick in holders indicate robust market interest in AVNT.
Potential for Future Growth: A breakout above the $0.40 mark could lead to further price gains.

Avantis - Assessing key drivers of AVNT's 62% weekly rally

Avantis Market Dynamics: A Shift to Bullish Momentum

The competition among decentralized exchanges might have quieted down, but Avantis is now reclaiming its momentum. Recently, AVNT's value surged by more than 22% within just 24 hours, pushing its total weekly gains to an impressive 62%. While Avantis thrives, other tokens like AsterDEX (ASTER) are currently facing challenges.

Bullish Turn in Market Structure

From a technical perspective, Avantis has successfully transitioned from a bearish market structure that prevailed for over a month. Following the significant market sell-off around October 24, AVNT began its price correction.

The token's price broke past a descending resistance line and surpassed the 50-day Simple Moving Average (SMA), indicating a strong shift towards bullish trends, reflected by a bullish Relative Strength Index (RSI) reading of 68.

AVNT Avantis Source: TradingView

Since the breakout on December 19, AVNT has consistently shown higher highs and higher lows. On Christmas, it rebounded from the $0.32 mark, positioning itself above the 50 SMA. However, there is some resistance looming around the $0.40 level—a price point that previously served as an accumulation area about a month ago. If AVNT clears the $0.40 resistance, it could aim for $0.60 or even higher. Conversely, slipping below the moving average could challenge the current bullish trend.

Signs of Strength in Network Activity

Data from Avantis Analytics reveals that total trade volume reached a weekly peak of 3.77 million trades on Boxing Day, with over 15,000 trades executed that day alone. The overall trading volume reflected a similar positive trend, nearing $56 billion at the time of writing. The daily volume was approximately $1.2 billion; among that, about $900 million were long positions and roughly $200 million were short.

Avantis Source: Avantis Analytics

Additionally, user participation is also on the rise, with data from Token Terminal showing that the number of holders increased to 109.8k, which is a gain of over 26k in just one month. This rise indicates renewed trading interest from investors. Moreover, the circulating supply has remained stable, at approximately 258.2 million tokens, suggesting limited availability. The turnover rate increased significantly, with a 49.6% rise for fully diluted value and a 192% rise for circulating supply.

Avantis Source: Token Terminal

All these factors combined help clarify the recent price surge of AVNT, exceeding the prior forecasts made by the AMBCrypto team. Technically, AVNT has achieved a bullish shift in both mid-term and long-term outlooks. However, persistent weaknesses across the broader market may pose challenges to sustained price appreciation.

Conclusion

As AVNT continues to gain traction, it remains crucial for investors and traders to keep an eye on market dynamics and trends. The combination of increasing trading volume, rising interest, and a fluctuating supply may set the stage for further price movements in the forthcoming weeks.