APT price signals bullish weakness, but when could traders look to go short?
The price action of Aptos showed that some short-term gains could materialize, but the $5.6 resistance zone could reject the bulls yet again
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Aptos was in a higher timeframe downtrend that would only be broken upon a move past $6
- The relative weakness of APT compared to other altcoins during the BTC bounce was likely to worry bulls
Aptos [APT] prices have trended downward since the second week of August. Even when Bitcoin [BTC] rallied from just below $25k in mid-September to reach $28.5k, Aptos bulls were unable to break this trend.
Read Aptos’ [APT] Price Prediction 2023-24
AMBCrypto’s analysis of Aptos on a higher timeframe price chart dated 25 September showcased two levels of interest at $5.65 and $4.93. The former one continues to serve as resistance, but can traders anticipate a bearish reaction upon a retest?
The 12-hour bearish order block remained a sturdy resistance zone
The past two months’ downtrend saw a lower high posted at 5.67 (dotted white) on 7 September. In the weeks since then, this level has not been breached yet. It was also where a bearish order block (red box) sat that extended from $5.6-$6.
The Relative Strength Index (RSI) was at 49 and signaled a slight bearish supremacy. The On-Balance Volume (OBV) insisted otherwise and has trended higher since mid-September. This was a sign that the buying volume has been steady and that Aptos could be gearing up for a move toward the resistance at $5.6 and higher.
Yet, until APT can close a 12-hour trading session above $6, its outlook remained bearish. The token has performed poorly in the market in recent months. A relatively low-risk selling opportunity would likely present itself should the price retest the order block.
The past week’s selling pressure meant short-term gains could be unlikely
The Open Interest (OI) climbed from $75 million to $81 million worth of contracts as APT prices bounced from $5.1 to $5.33. This showed bullish sentiment, although it wasn’t powerful. However, the funding rate has been negative over the past three days.
The spot Cumulative Volume Delta (CVD) also trended downward from 25 September to 4 October. The past two days saw the spot CVD remain flat. Together, the indicators noted a lack of spot demand, but slight bullishness in the futures market.
Is your portfolio green? Check the Aptos Profit Calculator
Bears can look to go short in the $5.6-$5.9 zone. This idea would be invalidated upon a move past the $6 level. Meanwhile, to the south, the low at $4.89 and the $5.05 levels could be used to make a profit.
