Recent data from CoinMarketCap reveals that Aptos [APT] has experienced a noticeable decline, witnessing an 8.09% drop in its value within the last 24 hours. Despite this downturn, the overall sentiment towards the asset remains positive, supported by a significant 36.63% monthly increase.
A thorough analysis by CryptoCrypto offers insights into the reasons behind the anticipated continuation of this growth.
Potential Rally in Store for APT
An examination within a 4-hour timeframe indicates a bullish trend for APT, with a retracement to a level that previously acted as resistance and is now serving as a supportive barrier, poised to trigger upward momentum.
Of vital importance is the $8.29 support level, where there is an expectation of substantial buying activity. The likelihood of this level holding is reinforced by the presence of a bullish Doji candlestick pattern, symbolizing robust buying interest at this price point.
Should this support level be maintained, APT is projected to revisit its previous high at $9.56, coinciding with a significant liquidity cluster. Conversely, failure to sustain this level could see the asset trade lower, potentially finding interim support at $7.81.
Confirmation of Bullish Signals for APT
Key technical indicators such as the Parabolic SAR and the Aroon Line indicate apparent bearish signals for APT on the surface; however, underlying trends imply a persistent bullish sentiment, according to insights from CryptoCrypto.
The Parabolic SAR, utilizing dots to denote market direction, illustrates dots positioned below the price bars, signaling an ongoing uptrend and suggesting an active influence by bulls in the market.
Similarly, the Aroon indicator, with its Aroon Up (orange) and Aroon Down (blue) lines, reflects support for the positive market outlook.
The prevailing bullish phase for APT is further confirmed by the Aroon Up line surpassing the Aroon Down line, indicating further upward potential.
Conflicting Signals Emerge, yet Bullish Trend Likely for APT
Recent on-chain metrics reveal a mix of signals within APT’s market dynamics.
One example is the decline of Open Interest by 10.72% to $162.74 million over the past day, as reported by Coinglass. This decrease hints at a bearish trend, implying a negative sentiment in derivative contract trading.
However, the spot market for APT displays encouraging signs. A negative Exchange Netflow highlights a withdrawal of over $5 million worth of APT from various crypto exchanges.
This movement indicates a probable short-term price increase for APT and suggests a forthcoming decrease in available supply, potentially leading to a supply shortage.
To steer APT back towards an upward trajectory, an upsurge in Open Interest with a higher number of long positions on APT would be essential.