Aptos [APT] has been moving sideways for almost three months now. Currently, the altcoin is trading close to a crucial support level ranging between $5.5 and $5.7. Bears have repeatedly tested this range, and a close below it could signal a deeper pullback in APT’s value.
APT has struggled to break above the 20-day and 50-day Exponential Moving Averages (EMAs), showing a strong bearish sentiment in the short term. A decisive move from the $5.7 support level could determine the direction of APT’s future trend.
Will APT bounce back or break through the critical support level?
If buyers manage to defend the $5.69 level, there might be a swift retest of the 20 EMA ($6.14), followed by the 50 EMA ($6.33). Rising above these resistance levels could potentially lead APT towards the next targets around $7.25.
However, it’s important to note that the EMAs are still pointing downwards, indicating that bullish efforts may face challenges unless there is a significant increase in buying pressure.
In case APT drops below the $5.69 support, the bears could drive the price towards the range of $4.91-$4.83.
The Moving Average Convergence Divergence (MACD) displayed a widening gap between the MACD line (blue) and the signal line (orange), both in negative territory. This suggests a growing bearish momentum, reinforcing the possibility of further decline if the $5.5 support level fails to hold.
Insights from Derivatives Data
Derivatives data supported the bearish outlook, with a 7.96% decrease in open interest to $93.56 million, indicating a lack of new market participants. The long/short ratio stood at 0.9201, suggesting a slightly higher number of short positions than long ones.
On Binance, both the long/short ratios for accounts and top traders hovered around 1.6 and 1.4, respectively, indicating a mixed sentiment among traders with a slight inclination towards bullish positions.
Trading volumes increased by 67.15% to $182.38 million; however, this surge may not be sufficient to generate strong bullish sentiment, especially with the long/short ratio close to balance.
Considering the bearish signals from the MACD and the long/short ratio, traders are advised to proceed with caution and wait for confirmation before making any trading decisions.
Monitoring for a potential momentum reversal near $5.69 or a clear breakdown will be crucial for identifying trading opportunities in the near term.