Aptos (APT) Faces Short-Term Downtrend but Long-Term Bullish Outlook Prevails

APT Shows Signs of Bearish Momentum

Following a significant 8.09% drop in value over the past 24 hours, Aptos (APT) has emerged as the second-highest loser in the crypto market. Despite this temporary setback, market indicators and sentiment point towards a minor correction rather than a major reversal.

Potential Rally Expected for APT

An analysis of the 4-hour time frame indicates that APT is currently at a critical support level of $8.29, where strong buying pressure is anticipated. If this support holds, APT could revisit previous highs at $9.56, supported by a bullish Doji candlestick pattern. However, a failure to maintain the support level may lead to a temporary dip with support at $7.81.

Confirmation of Bullish Signals for APT

Despite initial bearish appearances, technical indicators like the Parabolic SAR and Aroon Line suggest a bullish stance for APT. The Parabolic SAR dots positioned below the price bars indicate an uptrend, while the Aroon indicator shows the Aroon Up line above the Aroon Down line, signaling further potential growth for APT.

Mixed Signals Present, But Bullish Sentiment Persists

Recent on-chain metrics reveal mixed signals for APT, with Open Interest declining by 10.72%. This decline suggests a bearish trend in derivative contracts. However, a negative Exchange Netflow showcasing over $5 million worth of APT withdrawn from exchanges points towards a potential short-term price increase and supply squeeze. For a sustained uptrend, an increase in Open Interest with more long positions on APT would be crucial.