AVNT up 24% as Avantis starts burning its supply – Can bulls hold above $0.20?

The crypto token Avanatis [AVNT] outperformed the entire crypto market as it surged over 24% in the last 24 hours. The market cap of the entire sector only rose by 0.48% as the Fear & Greed Index jumped from “extreme fear” to 26 as of press time.

In fact, the spike in price action was reflected in the daily trading volume that jumped by 528%, as per CoinMarketCap.

This indicated growth in trading activity, which was fueled by fundamental news and supply dynamics, which likely contributed to increased investor interest.

Why Avantis’ price rallied in the past 24 hours

According to Avantis on X, they were embarking on reducing the token supply. To achieve this, they would be using 30% of the daily trading fees generated to buy AVNT from the open market and permanently burning them.

In fact, this systematic buy-back and burn mechanism was rolled out immediately, with the second milestone targeting a 50% burn of the fees. This would accelerate tightening the supply of AVNT tokens, whose maximum supply stood at 1 billion, while the circulating supply was at 319 million tokens.

As per the Avantis Foundation website, the total burned tokens had already reached 57,324 AVNT, worth about $9,167. The highest number was burned on March 11th, which represented half of this total, 28,981 AVNT valued at $4,607.

This action elicited sentiment across the social networks, which ballooned after another exchange listing. Uphold announced that they had listed the AVNT token to be traded exclusively in the next 24 hours.

Such a listing meant liquidity expansion and more reach. The strength was evident on the price action charts.

AVNT price breaks out of descending channel

The 4-hour chart showed AVNT had broken out from the one-and-a-half-month consolidation inside a falling trend channel.

The price action paused after briefly surpassing the $0.20 zone, which was a strong short-term resistance. However, staying above this level could push AVNT toward $0.22.

The spike in sentiment was reflected on the charts as the reading jumped to 100%. Also, the token volume was buyer dominant, with the Cumulative Volume Delta (CVD) spiking to 5.6 million AVNT in the past 24 hours.

However, the CVD dropped to negative 287K AVNT tokens indicated selling pressure was kicking in, probably from the profit-taking. That could be problematic for the current short-term bullish trend, as it suggests that the selling pressure may lead to a reversal in price momentum.

Liquidations spike in 12 hours

The total liquidations on Avantis were at $616K, with shorts accounting for $316K while longs were $299K. The biggest liquidations happened on Binance, followed by OKX and Bybit.

Therefore, liquidations amplified the gains, but they pointed out that traders were closing their positions.

Final Summary

• Avantis rallies 24% following its Uphold listing and the launch of a buy-back and burn mechanism. 
• AVNT price broke out of a descending trend channel, but traders were starting to take profit, as the CVD showed.