Since the final week of October, Aptos [APT] has been undergoing a downward correction in its price. Nonetheless, recent performance over the past two days suggests a potential return to the upward trend that began in mid-September.
APT recently experienced a pullback of around 30% from its peak in October. However, this correction came to a halt at a significant price level.
The pullback was anticipated to end within the range of $7.68 to $8.43, determined through Fibonacci retracement analysis from its lowest point in September to the highest price in October.
Last week, APT dropped to as low as $7.74 before initiating a bullish reversal, perfectly aligning with the Fibonacci retracement zone.
Subsequently, the cryptocurrency has surged by approximately 21% to reach $9.38 at the current price. Despite this recovery, APT still has a 19% surge remaining to reach its October highs.
Evaluating Aptos Network Activity
Can Aptos network activity fuel the recovery of APT? The network has been displaying growth across various significant metrics. For instance, Aptos has witnessed substantial address expansion in the latter half of 2024.
In June, the daily active addresses peaked at over 1.27 million, the highest figure recorded. During H2 2024, the lowest daily active address count dipped slightly below 50,000.
Address growth has shown consistent improvement in the past three months, reaching a peak of 808,313 addresses.
The surge in daily active addresses indicates robust network utilization.
This positive development is also reflected in the daily user transaction activity, despite a noticeable decline towards the end of November.
The network observed as many as 6.86 million transactions on October 26, which subsequently dropped to 1.77 million transactions by November 2, marking the lowest transaction volume in the last ten days.
However, Aptos transactions have been recovering since then, recently hitting 3.11 million transactions by November 5.
The slight decrease in transactions towards the end of September aligned with market uncertainty leading up to the U.S. elections. Nonetheless, the markets are anticipated to witness a resurgence in activity and excitement post the election results.
Robust network utility, coupled with an overall bullish sentiment, has the potential to bolster APT’s recovery in the forthcoming weeks.
Yet, investors should remain vigilant of unexpected significant corrections as market volatility returns.