Aptos Price Poised For Correction! Here’s Why APT Traders Should Be Cautious
As the Aptos token goes through a red trading session, a bearish reversal near its consolidation level may slump the token by 20%.
Moreover, technical indicators and on-chain metrics create bearish sentiments among investors.
Despite a harsh trading session last year for the crypto industry, layer one blockchain protocol Aptos managed to maintain a stable price moment. The Aptos token has brought a golden time 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 continuously faces multiple rejections to spark another bull run.
On-Chain Metric Worries Aptos Investors
This Aptos token has truly shined in 2023, proving itself to be one of the rising stars in the cryptocurrency world. With a stunning peak of $20.44 in January, Aptos has skyrocketed a whopping 448% from its bottom price range.
The Aptos network is supported by a wide range of investors from around the globe to push the network toward its goals. On Wednesday, the APT network announced a crucial node upgrade dubbed v1.2 which seeks to add new features and enhancements to improve performance, support new integer types, and reduce timeouts.
Despite overwhelming developments, the on-chain data of the Aptos token describes an opposite scenario. The Total Value Locked in DeFi has touched a low of 4.6 million APT tokens, which is much lower than its recent all-time high. Moreover, the number of transactions on the APT network has been on a downward spiral, and it is now close to reaching its all-time low.
According to on-chain analytics firm, AptosScan, the network processed only 612,715 transactions on 17 January, which is a far cry from its record high of over 2 million. This slump in users’ activity is undoubtedly a cause for concern, and it may build up a downward correction in the APT price chart.
What Lies Ahead For The Aptos Price?
Though the ongoing developments are enough to give bullish hopes, the Aptos token is printing negative momentum in the price chart. Furthermore, the Aptos token witnessed a total liquidation of nearly $6 million on Thursday, which gives a clear sign of profit-taking from investors.
As of writing, the Aptos token trades at $18.25, with an uptrend of 14.47% from yesterday’s performance. Analyzing the daily price chart, the Aptos token may witness a sharp increase in selling pressure if its price drops below the immediate support level of $16.17.
Moreover, the distance between the 20-EMA and 55-EMA is narrowing, hinting at a correction below the 23.6% Fib level from Aptos’ current price. The RSI-14 level is heading toward a neutral region as it flips near level 75, which may further strengthen a downward correction. A drop below the $16.17 level may slump the Aptos token’s price below the EMA-20 trend line at $12.
Conversely, Aptos may spark bullish expectations if it surges above the $20 resistance level, above which the token may witness solid buying pressure, pushing the price to $24.