Aptos might climb to the $8 mark again, but here’s why a reversal is likely
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The price action and momentum of Aptos were bullish over the past few days.
- The $7.3 mark was flipped to support, which suggested APT could climb toward $8 once more- but rejection from that resistance remained likely.
Aptos [APT] has flirted with the $8 resistance before. On 4 July the price climbed to $8.33 before facing rejection to slump back to the $6.85 low by 10 July. At the time of writing, APT showed strong lower timeframe bullishness once more.
Realistic or not, here’s APT’s market cap in BTC’s terms
Is this enough to breach the high of a month-long range? News of the APT unlock last week saw prices dip to $6.85 before recovering to the range highs a few days later. The Aptos bulls have the upper hand for now but with Bitcoin [BTC] back below $30.8k, bearish sentiment could begin to strengthen.
Aptos traders can expect some short-term gains soonThe month-long range, marked in yellow, extended from $6.68 to $8. Over the weekend, APT bulls were able to defend the mid-range mark at $7.34 as support. This suggested the price could rally to the $8-$8.2 zone.
Moreover, the OBV has slowly trended higher since 13 July. The RSI also remained above neutral 50 to show that momentum was bullish, although trading volume has been low over the past two days.
The market structure on the 4-hour chart was bullish, although APT lacked a strong trend on both the 4-hour and the 1-day timeframe price charts. Therefore, it is a good risk-to-reward trade to short the token near the range highs as the invalidation and take-profit levels can be clearly defined and have been respected for the past month.
The Open Interest saw a steady northward advance but the bullish sentiment remained lukewarmThe increase in OI since 15 July has amounted to $5 million. It has slowly moved higher alongside the price, but its magnitude wasn’t large enough to support the idea of bullish sentiment. Rather it was likely that speculators were sidelined, with a few of them bullish rather than the majority.
How much are 1, 10, or 100 APT worth today?
To contradict this idea, the spot CVD showed a positive slope. Its steady ascent since 13 July suggested demand outweighed selling pressure and that APT was likely to see further gains.
This was in line with the findings from the price action. But whether the action will result in a breakout past $8 was unclear. The continuation of the range was the most likely outcome in the coming days.