Can sellers gain from Aptos’ consolidation below $5.6?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• APT consolidated below $5.6 in early September.
• Demand in the derivatives market stagnated over the same period.

The low market volatility in the last few days has made the crypto market unattractive to traders. But small gains were still possible. In particular, Aptos [APT] could present a shorting opportunity if its narrow consolidation below $5.6 extends. 

How much are 1,10,100 APTs worth today? 

The altcoin inflicted a bearish breakout from its August range of $6.1 – $5.6 but consolidated narrowly below the range low in September. So far, the previous range-low of $5.6 has become a sticky roadblock and could present extra shorting gains. 

Will the $5.6 roadblock present another shorting gain?

Source: APT/USDT on TradingView

The $5.6 has proven to be a sticky roadblock throughout the first half of September. Price rejections at the roadblock eased towards $5.44. If the trend repeats, another price rejection at the roadblock could present late sellers with a shorting opportunity. 

If so, the short entry position will be at $5.6 with a take-profit at $5.44. Such a move could present a 2.76% gain. However, a 4-hour chart candlestick session close above the range-low near $5.7 will invalidate the short set-up. 

Meanwhile, the RSI retreated below the neutral 50 mark on the 4-hour chart at press time. It underscores overbearing sell pressure. On the other hand, the CMF wavered around the zero level, indicating that capital inflows stagnated from 8 September. 

Demand stagnated in the derivatives market

Source: Coinalyze

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Like the CMF, the Open Interest rates also wavered as early as 6 September. It shows demand for APT in the derivatives segment stagnated over the same period. The trend reinforces a neutral bias in the derivatives market. 

However, the CVD (Cumulative Volume Delta) went southwards, demonstrating sellers have more market advantage on the spot side. But it is worth noting the sideways movement at press time, which calls for caution as neither buyers nor sellers had absolute market control.