Avantis (AVNT) has rallied significantly, gaining 24.31% in 24 hours and 34.18% over the past week, as technical analysis points to a potential trend reversal following an extended bearish phase. The token, which trades on the Base blockchain, is showing signs of structural stabilization after declining 87% from its all-time high of $2.64.
The price action suggests a basing pattern is forming, with the development of a structure resembling an inverse head and shoulders. A key technical shift occurred as AVNT broke above its long-standing descending channel resistance, altering the prevailing bearish framework. The token was trading at $0.2697 at the time of reporting, up 10.98% over 24 hours.
Market engagement has intensified sharply, with derivatives data showing a 316% surge in trading volume to approximately $138.8 million. Open Interest increased by nearly 17% to about $28.1 million, and Coinalyze data indicated a 74% rise in Open Interest, signaling heavy speculative interest and new leveraged exposure entering the market.
Despite the bullish price action and long-skewed positioning on major exchanges like Binance and OKX, funding rates remain deeply negative. This indicates that the perpetual contract price is below the spot price, with shorts paying funding to maintain their positions. This scenario, combined with overcrowded short trades, raises the possibility of a short squeeze that could propel prices toward key liquidity clusters at $0.384 and $0.40.
On-chain metrics support the bullish narrative. The Chaikin Money Flow (CMF) surged to +0.22, indicating heavy capital inflows, and the daily trading volume was up 265%. The Awesome Oscillator was on the verge of a bullish crossover. Analysts note that confirmation near resistance levels remains decisive, with key short-term demand zones identified at $0.333 and $0.30. A drop below $0.28 would signal a need for further consolidation.
