Analysis
Aptos [APT] slides to $10 psychological zone, watch out for this level
Aptos [APT] dropped to a key confluence support area of $10, but selling pressure looms large. Can bulls inflict a recovery?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- APT was highly bearish at press time.
- More long positions wrecked in the past 24 hours.
Aptos [APT] has dropped to a key lower boundary and psychological level of $10. The retest of the boundary has put sellers and buyers on edge as each struggle for control. So far, candlewicks have been hitting $10 – confirming the bulls’ interest in defending the support.
Read Aptos [APT] Price Prediction 2023-24
However, a bearish Bitcoin [BTC] and a break below $27k could offer sellers more leverage. The king coin’s price rejection at $30k has set altcoins in extended correction. If BTC retraces further, APT could inflict a bearish breakout and offer more shorting opportunities.
A patterned breakout or rebound – Which way for APT?
Source: APT/USDT on TradingView
On the 12-hour charts, technical indicators – RSI and stochastic RSI, had hit oversold conditions. The oversold condition reinforces the prevailing bearish sentiment but also means sellers may take a break soon.
If that’s the case, buyers could attempt to secure the $10 support. The channel’s lower boundary also lines up with the descending trendline and offers more resistance to sellers.
Ergo, buying at current levels could provide a good risk ratio if APT defends $10 and rallies to the upper channel’s boundary of $14.
A bullish breakout could target the $18 price range.
Alternatively, sellers could inflict a bearish breakout, invalidating the above thesis.The breach could sink APT to $5.95 and could be accelerated if BTC falls below $27k. Notably, the OBV (On Balance Volume) dipped – evidence of limited trading volumes, which could favor sellers.
CVD spot declined
Source: Coinalyze
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According to Coinalyze, the aggregated CVD (Cumulative Volume Delta) spot declined, reiterating sellers’ increasing leverage in the market. In addition, out of about $930k total liquidations, over $700k worth of long positions have been wrecked in the past 24 hours.
On the other hand, short positions saw only $200k worth of liquidations, indicating longs were paying shorts – confirming the prevailing bearish sentiment.
Although this offers sellers slight leverage, any BTC recovery could deflate bears’ hope. Ergo, investors should track BTC price action alongside sentiment before making moves.
