At the current moment, Aptos [APT] is still showing a downward trend. The daily Relative Strength Index (RSI) indicates a persistent bearish momentum since December, emphasizing a need for caution among bullish investors due to the bearish market structure.
The price is nearing a crucial support level around the psychologically significant mark of $5. While a price bounce is anticipated in the near future, the question remains whether this could signal a shift towards a trend reversal.
Aptos Bulls Face Increasing Challenges
In mid-December 2024, when Aptos lost the bullish order block just above $11 (indicated by the red box), its market structure transitioned into a bearish phase. Subsequent attempts by buyers to initiate a recovery have failed, as selling pressure has consistently outweighed buying pressure, as evidenced by the On-Balance Volume (OBV) downtrend since December.
Since the strong rally that began at the $5 level last August, Aptos has shown significantly weaker growth compared to Bitcoin [BTC], whose value has surged by 78% amidst recent volatility, while APT has only seen an 11.87% increase. This disparity has diminished the confidence of bullish investors, complicating any potential recovery.
Analysis of the 1-month liquidation data has identified the $5.47 and $6.27 levels as critical zones of attraction. Given its proximity, APT is likely to gravitate towards the $5.47 level in the near term.
Additionally, examination of the 1-week heatmap has underscored the importance of the $5.5 liquidity cluster. The range between $5.34 and $5.5 presents a probable area for a short-term bullish reversal, offering an opportunity for swing traders to enter the market, potentially aiming for a profit target around $6.3.
Given the prevailing market sentiment that is cautious towards altcoins, it is advisable to adopt a more proactive approach in taking profits. Notably, CoinMarketCap data reveals that 50% of APT’s total supply remains locked up, raising concerns about the potential impact of these unlocks on holders unless demand significantly rises or an altcoin season materializes.
Disclaimer: The views expressed in this article are personal opinions and do not constitute financial, investment, or trading advice.