Within the last day, Aptos [APT] has faced a notable decrease of 6.61%, placing it among the leading losers of the day according to data from CoinMarketCap.
This downturn marks a continuation of a bearish pattern for APT, with ongoing sell-offs contributing to a 10.05% decrease over the past week.
At this crucial juncture, APT stands at a crossroads, with the potential for either recovering from recent losses or further extending its downward trajectory. Insights from CryptoCrypto’s analysis shed light on potential scenarios for the asset.
Will APT’s support level endure?
APT has arrived at a critical juncture on the chart that could dictate its future path—whether it will see a resurgence or continue on a downward spiral. This pivotal support level sits at $8.09.
Ideally, a support level should draw in enough buying pressure to stimulate a price recovery, although this is not always a guaranteed outcome. A bounce from this level could propel the price back towards a nearby supply zone before any potential consolidation.
Should APT fail to maintain this level, the next downside target lies at $7.23. A further decrease in market interest could result in a subsequent drop towards $6.42 or possibly even lower to $6.04.
APT Faces Increased Bearish Pressure Near the Brink
On-chain data sourced from Coinglass suggests that APT may be on the verge of a significant downturn as heightened sell-off activities exert downward pressure on its price.
Data on liquidations, which assess market sentiment by evaluating losses from both long and short positions, indicates a prevailing bearish outlook.
Over the past day, the market witnessed $1.65 million in liquidations, with a substantial $1.45 million stemming from long positions, indicating that traders anticipating a price upswing were taken by surprise.
Conversely, short liquidations amounted to just $202,370, underscoring the dominance of bearish sentiment.
A drop in Open Interest also hints at a potential decline for APT. Following a peak of $259.04 million on October 14, Open Interest has since fallen to $168.96 million, highlighting a diminishing interest in buying.
Open Interest measures the quantity of active, unfulfilled derivatives contracts within the market. A sharp decline often signals an increase in short positions as traders anticipate further declines for APT.
APT’s Demand Declines as Exchange Netflow Rises
Currently, APT’s Exchange Netflow has risen over the previous 12 hours, indicating a decrease in market confidence and contributing to the current price decline of the asset.
Exchange Netflow assesses the movement of a cryptocurrency in and out of exchanges. A positive Netflow implies heightened inflows, often signaling potential price drops as more tokens become available for sale.
Conversely, a negative Netflow indicates outflows, typically a bullish sign as the supply on exchanges diminishes. Given APT’s positive Netflow, a further decline may be imminent.