Current Market Trends and Patterns

Over the past several months, Aptos has been oscillating within a regression channel pattern on a daily timeframe. This pattern, characterized by downward diagonal movement between defined support and resistance levels, typically signals a potential for upward price movement once the upper boundary is breached.

Recently, APT experienced a notable 6.63% decline, but has since shown signs of recovery. The token rebounded with a 3.95% increase over the past 24 hours, reaching the support level of its current regression channel. This suggests that the recent decline may be reversing, and bullish momentum could be gaining traction.

Bullish Confirmation and Price Targets

The recent breakout above the daily regression channel provides a bullish confirmation for Aptos. This technical move indicates that buying pressure is increasing. Currently, APT is contained within a new regression channel on the 4-hour timeframe. Trading at the bottom of this channel aligns with another major support level at $6.25, highlighting strong buying interest.

If this bullish momentum continues, APT’s price is expected to rise towards the upper boundary of the channel, which is around $7.45. For long-term projections, analysts suggest that APT could potentially reach the $10 mark, should the bullish trend sustain.

Trader Sentiment and Market Activity

Trader interest in Aptos remains high, despite the ongoing bearish pressure. Recent data from Coinglass reveals significant liquidations of short positions. Specifically, shorts contributed $143.80k to a total of $199.59k in liquidations over the past 24 hours, indicating a prevailing bullish sentiment among traders.

The Relative Strength Index (RSI), a key momentum oscillator, is currently positioned at 48.73, indicating a neutral market condition. However, the RSI is trending upwards and approaching bullish territory. Historical data suggests that if the RSI moves above 50, APT’s price could see further gains.

Bearish Pressure and NetFlow Data

Despite the bullish indicators, bearish sentiment is still a significant factor. NetFlow data from Coinglass shows a positive NetFlow for APT, meaning that more APT tokens are being deposited into exchanges than withdrawn. This increased supply on exchanges could pressure the price downward, as higher availability often leads to selling.

Currently, APT’s NetFlow stands at $1.59 million over the past 24 hours, reflecting a persistent trend of increased deposits. This bearish signal is compounded by a decline in Open Interest since the beginning of September. Lower Open Interest suggests that bearish sentiment is still prevalent, which could lead to further price drops if short traders dominate the market.

Potential Risks and Support Levels

Investors should remain cautious as the market dynamics evolve. If the bearish pressure continues and short traders dominate, APT could potentially drop to a support level of $5.89. This scenario highlights the importance of monitoring key support levels and market signals to make informed trading decisions.

Conclusion

Aptos (APT) is at a crossroads with mixed signals influencing its price trajectory. The recent bullish breakout and increased buying pressure suggest potential for upward movement, with targets set around $7.45 and $10 in the long term. However, persistent bearish sentiment, as evidenced by positive NetFlow and declining Open Interest, poses a risk that could dampen the bullish outlook.