In an interesting turn of events, the Layer 1 blockchain protocol Aptos, founded by the some of the brightest minds that once worked at Facebook, is reportedly planning to release a whopping 20 million APT tokens in November as per data collected by TokenUnlocks. With APT trading at a little over $5, this effectively means that the token unlock could be potentially worth a staggering $103 million. This reveal comes as a significant jolt as it forms 8.5% of Aptos’ total circulated supply of 235 million APT and strikes speculation that such mass volumes could potentially squeeze the market liquidity.
However, a counter angle put forth by research firm The Tie suggests that the upcoming APT unlock in November, equivalent to 112% of the average daily trading volume in the previous month, could introduce substantial liquidity into the market. The long and short of it indicates that these situations usually bode negatively for prices.
As per data from APT perpetual futures markets, traders are adopting an increasingly bearish outlook as evident by the decline in funding rates. This basically translates to long and short contract holders making leaner payments – potentially a sign that shorts are subsidizing longs to close positions.
The serial numbers from the APT price analysis indicate a rather murky picture. Despite a minor increase of over 6% from its monthly low of $4.89 set on September 11, the APT price looks uncertain. The cryptocurrency, now in its third day of upward trend, is barely hanging on with a marginal rise of 0.17% so far today. As such, traders may need to tread carefully before buying Aptos.
Even the moving averages don’t look too promising for APT buyers. The 20-day EMA for APT price, slightly above $5, is actually more than the present rate of around $5.20, indicating a bearish market sentiment. This view is reaffirmed by the 50-day and 100-day EMAs which, at approximately $6.04 and $6.78 respectively, are both significantly above the current APT price.
A close assessment of APT Price’s resistance and support levels could give traders a better sense of its potential momentum in either direction. For instance, if it manages to break past the resistance zone of around $5.18 to $5.34, it could establish a short-term bullish trend. Conversely, if the APT price fails to break the resistance, it may possibly weaken towards its next significant support zone of $3.86
In conclusion, as Aptos gears up for its significant token unlock event, investors need to exercise caution, observe the market closely and make well-informed decisions based on both current data and upcoming market movements. While the technical indicators point strongly towards a bearish sentiment for APT price, the faint signs of a possible uptrend could also not be dismissed outright. In the midst of all this, a new player that’s turning heads is yPredict, an AI-powered crypto analytics platform that has raised over $3.85 million in its presale so far. As yPredict forays into content creation software leveraging AI, it may present new opportunities for investors in the blockchain space.
Source: Cryptonews
