Should Aptos bulls expect a reversal as price dawdles
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- No buying pressure behind Aptos suggested a bounce was imminent.
- Traders can watch out for a move southward and a positive reaction to look for buying opportunities.
Aptos [APT] has traded within a range since 23 June. The range low and high were $6.7 and $8. Around two weeks ago, Aptos bears forced prices to reverse from the $8 resistance zone. Now, the price was nearing the support at $6.7.
Read Aptos’ [APT] Price Prediction 2023-24
Bitcoin [BTC] was trading at $29.4k at the time of writing, below the former support level of $29.8k. This meant BTC had a bearish bias, although the weekend saw low volatility. Losses for BTC could drag APT lower.
The price action showed Aptos has strong support in the southThe range low was at the $6.7 level, but the $7 level has also served as support over the past month. These are the two levels that a bullish reversal could be initiated from. However, the RSI was back below the neutral 50 mark to show that momentum was bearish.
The OBV was also in decline over the past week as selling pressure increased. Together, they signaled that bulls were not back in control. Therefore, traders can wait for greater volume before looking to enter.
Alternatively, APT traders can also scan the lower timeframes for a long entry. The $7.2 level was a local high, while the $6.85-$6.95 region was a demand zone on the 1-hour chart. Bulls can look to enter a trade if APT moved above $7.2 and retested it as support, or a revisit to the demand zone.
The speculators did not show bullish conviction yetLike the 12-hour chart price action, the 1-hour chart from Coinalyze also showed that APT bulls might not be ready for a move upward. The falling Open Interest showed bearish sentiment and discouraged longs. The spot CVD noted a negative slope as well.
Realistic or not, here’s APT’s market cap in BTC’s terms
Aptos could linger in the $6.8-$7 area for a few more days as bulls gather their strength. The possibility of a sudden upward move was also there, and APT traders must be prepared to handle either scenario based on their risk appetite.
A risky approach would be to bid upon another move below $7 with a stop-loss below the $6.7 mark, targeting the range highs.