Key Insights
- After hitting its all-time high around $10.3, Aptos entered a descending channel.
- The cryptocurrency started a bearish trend when it became available on several exchanges.
- Aptos still hovers around the middle of the channel and is expected to retest the channel’s lower support.
Many crypto users and investors have found themselves intrigued by the underlying technology of Aptos.
Many investors have been drawn to it because of its premise to generate over 100,000 transactions per second. Such an amazing feat makes it possible for the Aptos network to rival other established networks like Solana and Atom.
A platform with such a high TPS can compete against well-known centralized money transfer platforms with high TPS, like Visa and MasterCard.
However, the bullish momentum of Aptos immediately plummeted when it went online. The cryptocurrency started a bearish trend when it became available on several exchanges.
Aptos (APT) Price Analysis
After hitting its all-time high around $10.3, Aptos entered a descending channel and has been ranging between the channel’s support and resistance since 22 October.
After hitting the top of the channel at around $8.3 on the first day of November, the cryptocurrency has started to trend lower this week and has now entered a range of around $7.3, where it now sits.
Aptos still hovers around the middle of the channel and is expected to retest the channel’s lower support around the $6.75 zone.
However, the RSI shows neutral conditions around 50.51, leaving the probability open that the cryptocurrency may trend to the upside and retest the top of the channel around $7.78.
At Risk of a Nosedive?
While the cryptocurrency remains stable as far as technicals go, it is still important to note that if Aptos continues downwards in its trajectory, hits the lower support, and a breakdown happens, the fall that results would be devastating at best.
The important resistance zone to watch on Aptos would be the $6.62 zone (illustrated by the red line).
The chart setup above, in a way, resembles a tipped pickup truck (blue descending channel) dumping candlesticks into a lake (red horizontal trendline). This perfectly illustrates what might happen if Aptos “happens” to dive below $6.62.
The price of Aptos has dropped by more than 19.73% over the last week, despite rising 1% over the last 24 hours.
The cryptocurrency’s price continues to fall even as the cryptocurrency market appears to be experiencing a fresh upward surge. As a result, it is safe to assume that Aptos’ bearishness is a result of the project’s infancy and its investors’ reluctance to take on risky bets.
As for the question of whether Aptos may be headed for a nosedive, the verdict would be that severe bearishness is a real possibility.
Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
