Crypto token Avanatis (AVNT) has outperformed the broader crypto market by rising over 24% in the past 24 hours. The market capitalization of the entire sector increased by only 0.48%, with the Fear and Greed Index rising from “extreme fear” to 26 at press time.
In fact, the price surge was reflected in daily trading volume which jumped 528%, according to CoinMarketCap.
This indicates growth in trading activity, fueled by fundamental news and supply dynamics, which has likely helped increase investor interest.
Why the price of Avantis has increased in the last 24 hours
According to Avantis on X, they were embarking on a token supply reduction. To achieve this, they would use 30% of the daily trading fees generated to purchase AVNT on the open market and burn it permanently.
In fact, this systematic buy-and-burn mechanism was deployed immediately, with the second stage targeting a 50% fee burn. This would accelerate the tightening of the supply of AVNT tokens, which had a peak supply of 1 billion, while the circulating supply was 319 million tokens.
According to the Avantis Foundation website, the total number of tokens burned had already reached 57,324 AVNT, worth approximately $9,167. The highest number was burned on March 11, representing half of that total, or 28,981 AVNT worth $4,607.
This action sparked sentiment on social media, which exploded after another stock market listing. Uphold announced that it has listed the AVNT token for trading exclusively in the next 24 hours.
Such a listing signified an expansion of liquidity and greater reach. The strength was evident on the price action charts.
AVNT price breaks out of descending channel
The 4-hour chart shows that AVNT has broken out of a month-and-a-half-long consolidation inside a downtrend channel.
The price action stopped after briefly surpassing the $0.20 area, which was strong resistance in the short term. However, staying above this level could push AVNT towards $0.22.
The rise in sentiment was reflected on the charts as the reading jumped 100%. Additionally, token volume was dominant for buyers, with cumulative volume delta (CVD) reaching 5.6 million AVNT over the past 24 hours.
However, CVD fell below 287,000 AVNT tokens, indicating that selling pressure was building, likely due to profit-taking. This could be problematic for the current short-term uptrend, as it suggests that selling pressure could lead to a reversal in price momentum.
Peak liquidations in 12 hours
Total liquidations on Avantis were $616,000, with shorts accounting for $316,000 while longs were $299,000. The largest liquidations took place on Binance, followed by OKX and Bybit.
Therefore, the liquidations amplified the gains, but they emphasized that traders were closing their positions.
Final summary
- Avantis rebounds by 24% following its Uphold listing and the launch of a buyback and burn mechanism.
- AVNT price broke out of a descending trend channel, but traders started taking profits, as shown by the CVD.
