The Avantis crypto price has suffered a substantial reversal, plunging by over 48% from its all-time high. AVNT token was trading at $1.40 on Monday, its lowest level since September 20th.
Avantis Crypto Has Crashed Despite Soaring Perps Volume
The ongoing Avantis crypto price crash has happened despite its network firing on all cylinders in terms of perpetual volume.
Data compiled by DeFi Llama shows the Avantis network handled a record $7.4 billion in volume this month, much higher than the $4.6 billion it handled in August and the $4.85 billion that it processed in July.
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This growth has led to a significant increase in fees in the network. Its annualized fees stand at $24 million, a significant amount for a network known for charging low fees.
The ongoing Avantis growth happened as the total perpetual exchange volume soared this year. Its combined volume rose to over $904 billion this month, up from $767 billion in August. This represents strong growth for an industry that handled $365 billion in January of this year and $131 billion in September of last year.
Aventis price is crashing because the industry has become highly competitive in the past few months, with Aster handling over $42 billion in the last 24 hours and $205 billion in the last 30 days.
The AVNT price has also declined due to profit-taking among investors following its strong surge earlier this month. It is common for a cryptocurrency to plunge after going parabolic within a short period.
Nansen data shows that smart money investors have continued to slash their Avantis crypto holdings in the past few days. They have reduced their holdings from 1.2 million on September 13 to 319k today, a sign that they expect the price to drop.
The same has happened among whale investors who have dumped their positions from 342,646 on September 26 to 102,225 today.
Avantis price has also plunged because of the recent overall performance of the crypto market, which has plunged in the past few weeks.
AVNT Price Technical Analysis
The Avantis crypto price has plunged in the past few days, moving from a high of $2.6782 on September 22 to $1.4 today.
This crash happened after the token formed a head-and-shoulders pattern on the hourly timeframe chart.
It has now moved below the important support level at $1.5815, its highest level on September 15. Also, it has dropped below the 50-period moving average.
On the positive side, Avantis crypto price has formed a falling wedge pattern, which often leads to a rebound. This pattern means that the token will likely rebound and potentially hit the resistance at $2.
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