Over the past week, Aptos [APT] has been undergoing a downtrend, mirroring a bearish sentiment. However, recent market movements indicate a possible shift towards a bullish trend, reminiscent of its performance in mid-September.
The correction in APT saw a decline of around 30% from its peak in October, with the price action finding stability within a significant range.
Forecasts predicted that the correction would halt within the range of $7.68 to $8.43, calculated using Fibonacci retracement from the lowest point in September to the highest in October.
During the week, APT reached a low of $7.74 before a bullish reversal occurred, aligning perfectly with the Fibonacci retracement zone.
Since then, the digital asset has surged by approximately 21%, currently priced at $9.38. Despite this rebound, APT is still poised for a further 19% increase to reclaim its October peaks.
Evaluating Aptos Network Performance
Can Aptos network activity underpin APT’s resurgence? The network has displayed growth across various critical metrics. Notably, the second half of 2024 witnessed robust address expansion within the Aptos ecosystem.
In June, daily active addresses peaked at over 1.27 million, marking a record high, while the lowest daily active address count in H2 2024 dipped just below 50,000.
Address growth has remained consistent over the past three months, surging to 808,313 addresses.
The spike in daily active addresses indicates robust network utilization.
While daily transactions witnessed a notable decline towards the end of November, Aptos managed over 6.86 million transactions on October 26, which dwindled to 1.77 million by November 2, marking a ten-day low.
However, transaction volumes have been on the rise, with Aptos recently recording 3.11 million transactions as of November 5.
The slump in transactions at the close of September was likely influenced by uncertainty surrounding the U.S. elections. With more market stability anticipated post-Trump’s triumph, a rebound in sentiment and activity is expected.
Amid healthy network utilization and positive market sentiment, APT stands poised for a possible recovery in the ensuing weeks.
Nevertheless, investors should exercise caution as increased market volatility could lead to unforeseen sharp corrections.