Aptos (APT) has recently flashed a buy signal, as indicated by the TD Sequential on its weekly chart. This technical indicator suggests that the cryptocurrency could be poised for a significant rebound. At press time, Aptos traded at $6.18, reflecting a modest 1.19% increase in the last 24 hours.
Can Aptos Overcome Crucial Resistance Levels?
APT has experienced notable price fluctuations over the past several months. After reaching a high of $9.80, the token has faced substantial resistance and is currently hovering around $6.19. If Aptos can break through this key resistance, it could rally toward $7.82 and potentially reclaim its previous high of $9.80.
However, failure to surpass this level could result in a pullback, with critical support sitting at $5.68. The upcoming trading sessions will be pivotal in determining whether APT can break free from consolidation and sustain an upward trajectory.
Technical indicators further highlight this uncertainty. The Relative Strength Index (RSI) currently stands at 38.35, nearing oversold conditions. If buying pressure increases, APT could see a strong rebound, reinforcing the TD Sequential’s buy signal.
Liquidations: A Catalyst for Further Gains?
APT has recently witnessed significant liquidations, totaling $9.96 million. Interestingly, most of these liquidations were from short positions, as traders betting against the asset were caught off guard by its price increase.
This surge in liquidations could serve as fuel for a rally, as more short positions getting liquidated would create additional buying momentum. If this trend continues, it may provide the push needed for APT to break through its immediate resistance levels.
Declining Social Dominance: A Concern for Sustained Growth?
Despite the buy signal and increased liquidations, Aptos’ Social Dominance and Volume have been declining. Social Volume recently peaked at just 16 mentions, while social dominance has fallen to a mere 0.072%. This drop indicates waning interest, which could hinder its ability to maintain upward momentum.
If the decline in social engagement persists, it may become increasingly difficult for APT to sustain its recent gains. A revival in market interest and community discussions will be crucial in determining the cryptocurrency’s long-term trajectory.
Although the TD Sequential Indicator suggests a buying opportunity, Aptos faces multiple challenges that could impact its ability to sustain an uptrend. Breaking key resistance levels and reviving social engagement are essential for maintaining its rally.
If APT can overcome these hurdles, it may extend its gains and push toward higher price levels. However, without increased market participation and sustained momentum, the rally could be short-lived. Traders and investors should closely monitor upcoming developments to assess whether Aptos can deliver on its bullish signal.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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