Throughout the previous month, Aptos [APT] has experienced significant downward pressure on its value. During this timeframe, the cryptocurrency exhibited notable price swings as well, dropping to a low of $4 from a peak of $9.8.
An examination of the price chart revealed that Aptos has been trading within a descending channel in the past month. Each attempt to break out of this resistance level has resulted in rejection, confirming widespread bearish sentiment.
At the time of publication, the price of APT stood at $6.07, showing a 4.45% decline in value within a 24-hour period. Similarly, APT registered declines on both weekly and monthly charts, decreasing by 1.32% and 27.55% respectively.
Despite the continuous decline in price, there are indications of a potential resurgence in market confidence. Recent data from Santiment suggests that investor sentiment has surged to levels last seen in November. The weighted sentiment, reaching a three-month high, indicates a more favorable outlook from investors towards Aptos compared to negative opinions. It is noteworthy that the weighted sentiment has remained positive for the past five days.
With sentiment reaching these levels, the question arises whether this could propel APT’s price towards recovery.
Is Aptos poised for a recovery amidst rising sentiment?
According to the analysis by CryptoCrypto, buyers are showing signs of reentering the market, while sellers are displaying signs of fatigue.
For instance, Aptos’s Delta indicator turned positive after predominantly showing negative trends, hinting at increased buying pressure surpassing selling pressure.
The increase in aggressive buying activities across the market indicates growing demand. Sustained positivity in the Delta indicator suggests buyers are willing to pay higher prices.
The upsurge in buying pressure is further supported by the order imbalance, where positive imbalances outweigh the negative ones.
This positive trend has persisted for the last two days, indicating robust bullish sentiment with significant market players accumulating assets.
Furthermore, the long/short ratio for the altcoin indicates a dominance of long positions in the market. Currently, long positions account for 75.3% of total Futures accounts, while short positions make up 24.77%. The prevalence of long positions signifies investor optimism and an anticipation of a price rebound in the short term.
To summarize, buyers have commenced accumulating assets at lower prices, suggesting that if this buying momentum continues, Aptos might break free from the descending trendline and potentially reclaim $7, paving the way for APT to reach $8.53 in the long run.