- APT anticipates a token unlock on 11th September, which could lower the asset’s price due to an increase in supply.
However, there remains significant buying pressure, suggesting that APT’s price may continue to rise.
As a seasoned crypto investor with a knack for navigating market turbulence and deciphering complex charts, I find myself at a critical juncture regarding Aptos [APT]. The upcoming token unlock on September 11th presents a conundrum that has me on the edge of my seat.
For the past month, Aptos (APT) has experienced a 3.87% price rise, boosting its daily value by 3.44%. This growth suggests strong underlying qualities that aren’t typically present in numerous other cryptocurrencies, which are finding it difficult to maintain balance following the market slump.
On the other hand, these benefits could potentially be undone if traders respond unfavorably to the forthcoming rise in supply.
Token unlocks may intensify selling pressure
On September 11th, as reported by Token Unlocks, a large amount of APT is set to enter the market. This event will boost the overall supply and make available approximately 11.31 million APT tokens, equivalent to around 2.32% of the current circulating supply. The total value of these tokens amounts to roughly $66.05 million.
Unlocking tokens makes them accessible for trade or transfer; in APT‘s context, those who benefit from this action are the community, private investors, the Aptos Foundation, and the team members.
Previously mentioned, when more tokens are in circulation, significant investors might choose to sell off their assets to realize profits or decrease their holdings to reduce potential losses.
If the current supply of APT tokens isn’t matched by an equal demand from buyers, it’s probable that the price of APT will drop.
Bearish sentiment is gradually building
As the unlock date for tokens nears, it’s clear that bearish sentiment is present. This can be seen in the disparity between the price of APT and the Chaikin Money Flow (CMF).
The CMF offers a measurement of the average accumulation and distribution of a certain asset over a given timeframe, calculated based on volume-weighted averages. In simpler terms, it aids traders in evaluating the movement of funds towards or away from an asset, thereby indicating potential buying or selling trends.
Currently, as we speak, while the APT‘s price graph is noticeably rising (indicated by the black line pointing upwards), the CMF for the same asset is falling (depicted by the black line moving downwards). This downward movement in the CMF contrasts significantly with the upward trend in APT’s price, resulting in a substantial divergence.
This gap indicates that although prices are increasing, the financial backing for these hikes seems to be dwindling – suggesting a lack of strong buying power and an increase in sellers’ enthusiasm.
This situation might cause a decrease in price since sellers seem to be gaining more control than buyers, who appear to be slowing down. If this pattern continues up until the token unlock event, it’s possible that the price of APT may start to drop.
On the other hand, AMBCrypto points out certain factors that could potentially offset the bearish sentiment currently prevailing in the market.
The bulls are still a dominant force
As a researcher, I’ve been closely observing the price fluctuations of Aptos and have noticed an interesting pattern emerging. The analysis conducted by AMBCrypto indicates that the approaching token unlock could potentially trigger a rally in the price of Aptos, provided the prevailing bullish forces remain robust. If these positive sentiments persist even beyond the token unlock, we might see further price increases.
Currently, APT shows two significant trends: firstly, its price is moving repeatedly between boundaries of a rectangle-shaped pattern, and secondly, it’s crossing over a downward sloping line, suggesting an overall bearish trend.
Investors seem to be actively buying APT, suggesting they expect it to break free from its downward trend and the period of sideways movement (consolidation).
If this breakout occurs, AMBCrypto has pinpointed six potential price levels for possible gains: $7.45, $7.95, $8.61, $9.23, $9.66, and $10.41.
Read Aptos’ [APT] Price Prediction 2024-25
On Coinglass, the Open Interest data lends support to the positive outlook, indicating a substantial increase – the Open Interest (OI) has climbed by approximately 8.59%, reaching a total of around $90.64 million.
If pessimistic forces take control, there’s a possibility that APT might drop below the lower limit of its consolidation range, possibly falling to around $4.32 from its starting point at $5.73.
Read More
- ZK PREDICTION. ZK cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- SHIB PREDICTION. SHIB cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- ETH PREDICTION. ETH cryptocurrency
- CYBER PREDICTION. CYBER cryptocurrency
- BCH PREDICTION. BCH cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- COMP PREDICTION. COMP cryptocurrency
- FARM PREDICTION. FARM cryptocurrency
2024-09-10 10:16