Aptos (APT) has faced some bearish pressure recently, with the token dropping by 7% over the past week. However, at press time, APT has started to show signs of recovery, rising by 3% to $7.84. This shift has raised hopes of a potential rebound for the blockchain network. With stablecoin inflows and recent network updates, APT might be gearing up for a stronger move in the near future.
New 'ATH' for #Aptos might have THIS effect on #APT's price action soon https://t.co/TS769y8K9C
— AMBCrypto (@CryptoAmb) February 1, 2025
Stablecoin Inflows Fuel Network Activity
One of the key drivers of Aptos’ recent activity is a sharp increase in stablecoin transactions. The total market capitalization of stablecoins on the Aptos network has reached an all-time high of $789.3 million, marking a 25% increase just in January. This surge indicates heightened network usage, with more traders using Aptos for trading, lending, and staking activities.
This surge in stablecoin volume has the potential to positively affect APT’s value. Typically, rising stablecoin inflows indicate increased demand for the native token. As more users flock to the network, APT could experience upward price momentum. The recent introduction of USDC on Aptos further adds fuel to this trend, bringing additional liquidity and new opportunities for developers and users alike.
Is APT Ready for a Reversal?
Despite these positive developments, APT is still facing challenges. A “death cross” has appeared on the charts, with the 50-day Exponential Moving Average (EMA) crossing below the 200-day EMA, signaling bearish momentum. However, there has been a noticeable uptick in buying pressure, suggesting that a potential reversal might be in the cards.
Currently, the Chaikin Money Flow (CMF) remains in negative territory, indicating that buying activity has not yet surpassed selling pressure. A shift into positive CMF territory could trigger a stronger rally for APT. Traders are optimistic, with the long/short ratio reaching 1.06—its highest level in a month—indicating that many believe APT could break free from its bearish trend.
Also Read: Will Aptos (APT) Break $10? Key Resistance Levels and Bullish Outlook Explained
With increasing stablecoin inflows and rising network usage, Aptos is at a critical juncture. Overcoming bearish signals will be essential for APT’s price movement in the coming days.
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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