Aptos soars to 5-month high – Will the bullish times continue?

• APT bulls demonstrate strength as price pushes further away from local lows.
• Will Aptos’ budding utility and demand soften APT’s potential pullback?

Aptos [APT] managed to achieve a new 5-month high in the last 24 hours. This was courtesy of its extended bullish momentum, building on its September rally.

APT pushed above $10 on Sunday for the first time since April. This performance highlighted fresh efforts to overcome the lower range, where it has been stuck for months.

This is after the crash which occurred between March and July, eliminating the gains attained in its previous rally.

Is APT on the verge of another pullback? While its recent upside underscores strong demand, a pullback is probable.

Although it pushed to a new 5-month high of $10.68 in the last 24 hours, it has since demonstrated a resistance resurgence against more upside.

APT exchanged hands at $10.08 at press time, highlighting the risk of sliding below $10 once more.

Source: TradingView

The cryptocurrency previously experienced resistance around the $10 level, raising the possibility that it may experience a mid-week retracement near the same level.

While a short-term retracement could be on the cards, the cryptocurrency could be on the verge of more upside before the end of the year.

APT bears are ready to take over

Although APT has been pushing higher, there were some signs of a potential pivot. For example, the RSI has been achieving lower highs in the last three weeks, forming a bearish price-RSI divergence pattern.

This suggests that the bulls might be losing their momentum.

Source: TradingView

The bearish divergence suggests that sell pressure is likely to surge. An assessment of APT buy and sell volume revealed that such an outcome was already playing out.

The latest on-chain data revealed a surge in sell volume in the last 24 hours. It was notably higher than the prevailing buy volume, which might be due to surging profit-taking.

Source: HyblockCapital

While these observations suggest a high likelihood that APT may experience some sell pressure, a retracement may be limited.

This is because a substantial amount of APT demand has been coming from the budding Aptos network utility.

Read Aptos’ [APT] Price Prediction 2024–2025

Aptos TVL clocked a new ATH at $730.71 million in the last 24 hours. The network’s stablecoin marketcap also pushed to new territory in the same period after pushing above $256 million.

These observations underscore the surging network utility, underpinned by more confidence in the network. These factors may shield APT from a strong pullback.