Aptos [APT] recently went through a challenging market phase, experiencing a 6.63% downturn. However, after hitting the support level of its current regression channel, it displayed a 3.95% upturn over the past 24 hours.
While the general sentiment towards APT leans towards optimism, there is an underlying bearish view that warrants a comprehensive examination of the existing trends.
Significant Bullish Indication
From April to August, APT has been engaged in trading within a regression channel pattern characterized by a downward diagonal movement between two distinct levels – the upper and lower lines that represent supply and demand areas.
This pattern is typically bullish and is confirmed by breaching the upper line of the channel, signifying an increase in buying pressure, as was recently witnessed when APT broke above the daily regression channel.
Currently, APT finds itself enclosed within another regression channel in the 4-hour timeframe, further reinforcing the bullish confirmation.
The current position of APT places it at the base of this regression channel, coinciding with a crucial support level at $6.25. This alignment suggests a strong surge in buying activity.
This surge is anticipated to steer APT’s price towards the channel’s peak at $7.45, serving as the short-term goal, with a future target set around the $10 mark.
Sustained Trader Interest
Based on Coinglass’s liquidation chart data, there has been a notable anticipation among traders for an APT decline over the last 24 hours, leading to significant liquidations.
Short positions accounted for $143.80k of the $199.59k total liquidation amount, in contrast to long positions contributing $55.79k, underlining a positive market sentiment.
This trend reflects a growing confidence in APT’s potential upward movement, potentially propelling its market value higher.
Moreover, the Relative Strength Index (RSI), which identifies overbought and oversold conditions, positions APT within the neutral territory at 48.73.
Observing the upward trend of the RSI, nearing the upper neutral limit, historical data suggests that a transition into bullish territory above the 50 mark could lead to a price surge in APT.
Persistence of Bearish Presence
NetFlow data from Coinglass indicates the continued presence of bears in the APT market. NetFlow is determined by subtracting an asset’s inflow from its outflow on exchanges.
In the case of APT, its consistently positive NetFlow implies a growing deposit of APT on exchanges, increasing the supply and potential for selling pressure.
The recent NetFlow figure for APT stood at $1.59 million over the past day, a trend that has been ongoing for the last week.
Furthermore, Open Interest has been decreasing since the onset of September, suggesting a prevailing bearish sentiment.
If short traders maintain dominance, APT could potentially decline to as low as $5.89, as highlighted in the accompanying chart.