APT, the native token of layer-1 blockchain Aptos, is up by a mild 5% today and trading close to $5. This price increase comes ahead of the altcoin’s token unlock, which is scheduled for Friday, April 11.
On several occasions, Aptos price experiences a notable correction ahead of the unlocks. But in most cases, those unlocks are usually larger than this.
According to this analysis, the aftermath of this unlock might not be a notable rally. However, Apto’s price is also unlikely to face a notable downturn. Here is why
Aptos Sees Mild Gains
Based on Tokenomist (previously Token Unlocks), Aptos will unlock 11.31 million tokens tomorrow. These tokens represent 1.87% of its total circulating supply and are worth approximately $52 million.
Ahead of the unlock, Aptos’s price seems to be defending its support at $4.34. If sustained, the altcoin might not experience a drop below $4 in the short term.
In addition, on-chain data shows that the Aptos price has formed a falling wedge on the daily chart.
A falling wedge is a bullish chart pattern that forms during a downtrend, signaling a potential reversal. It occurs when the price is moving lower, but the range between highs and lows is narrowing over time, creating a wedge-shaped pattern.
However, to validate the uptrend, selling pressure must be reduced, and buyers must step in. The Chaikin Money Flow (CMF) reading has dropped slightly below the zero signal line.
Looking for a safe place to buy and sell APTOS APT? See the leading platforms for buying and selling APTOS APT.
This indicates that the buying momentum is getting weak. While APT might display strength, this position indicates that the price might continue to wobble around the same point.
If this trend continues, the value might fail to test the resistance at $5.60.
APT Price Analysis: No Major Correction
Regarding its short-term outlook, the same daily chart shows that the dots of the Parabolic Stop And Reverse (SAR) indicator are above Aptos’ price. The Parabolic SAR is a technical indicator used to identify potential trend reversals and determine entry and exit points in the market.
When the dots switch from below the price to above it, it suggests a trend reversal from an uptrend to a downtrend. On the other hand, when the dots switch from above the price to below it, it suggests a trend reversal from a downtrend to an uptrend.
Therefore, the current outlook shows that APT is unlikely to sustain its uptrend. In the short term, the price might keep wobbling between $4.34 and $4.89.
However, if buying pressure increases, the CMF reading might climb above the zero signal line. In that case, the Aptos price might climb to the 0.236 Fibonacci level at $6.62.
Alternatively, an increase in selling pressure might invalidate this outlook. If that happens, the altcoin’s value might decline to $3.91.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Was this Article helpful?
