As the Aptos token goes through a red trading session, a bearish reversal near its consolidation level can sink the token by 20%.
Despite a tough trading session last year for the crypto industry, layer one Blockchain protocol Aptos managed to maintain stable price momentum.
The Aptos token has brought a golden moment in the altcoin market this year, as it gained over 400% in January, receiving a massive token accumulation rate from investors. However, the APT token fails to achieve a healthy trading session, as it continually faces multiple rejections to spark another bull run.
On-Chain Metric Worries Aptos Investors
This Aptos token really shined in 2023, proving to be one of the rising stars in the cryptocurrency world. With an impressive peak of $20.44 in January, Aptos has shot up 448% from its lowest price range.
The Aptos Network is supported by a wide range of investors from around the world to drive the network towards its goals. On Wednesday, the APT network announced a crucial node update dubbed v1.2 that seeks to add new features and enhancements to improve performance, support new integer types, and reduce wait times.
Despite the overwhelming developments, the on-chain data for the Aptos token depicts an opposite scenario. The total value locked in DeFi has hit a low of 4.6 million APT tokens, which is much lower than its recent all-time high. Furthermore, the number of transactions on the APT network has been on a downward spiral and is now close to reaching its all-time low.
According to on-chain analytics firm AptosScan, the network processed just 612,715 transactions on January 17, which is a far cry from its record of more than 2 million. This drop in user activity is certainly cause for concern, and it may lead to a downward correction in the APT price chart.
What’s Coming up for Aptos Pricing?
Although the ongoing developments are enough to raise bullish hopes, the Aptos token is printing negative momentum in the price chart. Furthermore, the Aptos token witnessed a total liquidation of almost $6 million on Thursday, giving a clear sign that investors are taking profits.
Currently, the Aptos token is trading at $18.25, with an uptrend of 14.47% from yesterday’s performance. Looking at the daily price chart, the Aptos token may see a sharp increase in selling pressure if its price falls below the immediate support level of $16.17.
Furthermore, the distance between the 20 EMA and the 55 EMA is narrowing, which suggests a correction below the 23.6% Fibonacci level from the current Aptos price. The RSI-14 level is heading towards a neutral region, as it approaches level 75, which can further strengthen a correction to the downside. A drop below the $16.17 level can send the Aptos token price below the EMA-20 trend line at $12.
Conversely, Aptos may trigger bullish expectations if it breaches the $20 resistance level, above which the token may experience solid buying pressure, pushing the price up to $24.
By Audy Castaneda
