Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- APT’s momentum waned.
- Several obstacles blocked the bulls’ leverage.
Aptos [APT] flashed green for the better part of January 2023, but 1 – 8 February was unsettling, as APT shrunk by 7%. Compared to its January rally, APT posted over 300% gains after rising from $3.4 to $20.
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At press time, APT secured a support level but faced price rejection at a crucial resistance level. The recovery could continue if the support holds in the next few hours/days.
Can bulls clear the immediate hurdle at $16.3615?
Source: APT/USDT on TradingView
APT’s 350% performance faced an initial hurdle at the $20.2745 level. Afterwards, several price rejections at $18.4285 turned it into a critical resistance level. However, bears gained more leverage and devalued APT to below the 61.8% Fib level of $15.2720.
Although bulls found steady ground at $14.6655, but the support-turned-resistance level of $16.3615 was an immediate hurdle twice. However, bulls could reignite the recovery.
The Relative Strength Index (RSI) was neutral, while the Money Flow Index (MFI) indicated a short-term accumulation trend. If demand for APT increases, bulls could break above the $16.3615 hurdle and target the bearish order block at $18.4285.
However, a break below the $14.665 support level would invalidate the above bias. The drop could be checked by the 50% Fib level of $13.6959 or the 38.2% Fib level.
Notably, APT’s trading volume and RSI have dropped significantly since mid-January, lending credence to a continued fall.
However, RSI recovered slightly and rested at the neutral level at press time. An RSI rebound from the neutral level would suggest a building uptrend momentum capable of overcoming the immediate hurdle.
APT weekly volatility waned, but …
Source: Santiment
As per Santiment, APT’s weekly volatility registered a sharp drop, followed by a stagnant session before a gentle rise began at the time of writing. It showed that APT’s market dropped in the past week before a price consolidation set in. But still, there was a weak recovery attempt at press time.
Read Aptos’ [APT] Price Prediction 2023-24
In addition, APT recorded negative sentiment, showing investors’ outlook was bearish on the asset. Therefore, APT’s strong recovery could face headwinds.
On the other hand, the open interest (OI) rate has been falling but steadied in the past few days. Although it could suggest a possible trend change and likely recovery, investors should also monitor BTC movements for confirmation. A strong recovery could be feasible if BTC reclaimed its $23.5k level, but a drop below $23k would undermine the recovery.
Source: Coinglass
