Aptos (APT) has been on a strong upward trajectory for the past three months, but a recent correction has brought the price down from its 7-month high of $13.75, reached on November 11. As APT faces a crucial test at key support levels, traders and investors are closely watching whether the bulls can defend these areas and maintain the momentum. The outcome of this retest could have a significant impact on the price direction in the coming days.

Recent Price Correction and Support Levels

After reaching the $13.75 peak, Aptos has seen a near 8.7% decline, with the price currently trading at around $11.11. This drop has placed APT in a critical position, testing a confluence of support levels near the $10.35 region. The $10.35 zone is not just a horizontal support level, but also aligns with an ascending trendline and the 20-day exponential moving average (EMA), making it a key area to watch for any signs of a potential bounce.

The importance of this level cannot be overstated, as it will play a pivotal role in determining Aptos’ near-term trend. If the bulls can successfully defend the $10.35 support, a rally back toward the $13.75 resistance is possible. A retest of this resistance would be significant, as it coincides with the upper boundary of the ascending channel, further reinforcing its importance.

Potential Upside and Resistance Levels

If Aptos manages to hold the $10.35 support and pushes back toward higher levels, the first target would be the $13.75 resistance, where the previous high was formed. A successful close above this level would likely open the door for further gains, potentially pushing APT towards the $15-mark.

Breaking through the $13.75 resistance would signal a continuation of the bullish trend and could create the conditions for further upside movement. Such a move would strengthen the positive outlook for Aptos, making it one of the more promising altcoins in the market.

Bearish Scenario and Breakdown Below Support

However, if Aptos fails to defend the $10.35 support and the price breaks below this level, it could signal a shift in market sentiment. In this case, the next likely support zones to watch would be the 50-day EMA at around $9.43 and the 200-day EMA at $8.40. A sustained move below these levels would suggest a lack of buying pressure, leading to a potential consolidation phase or even a deeper pullback toward the $8 zone.

In this scenario, the market could enter a period of indecisiveness, with traders unsure whether the recent price action was a temporary setback or a sign of a longer-term trend reversal. A failure to regain momentum above the $10.35 support would significantly weaken the bullish outlook for Aptos, increasing the likelihood of a bearish phase.

Market Sentiment and Derivatives Data

The current market sentiment around Aptos is mixed, as indicated by the recent changes in its derivatives data. Open interest, which measures the total value of active contracts in the futures market, dropped by 11.96% to $251.35 million. This suggests that many traders have closed their positions, possibly due to uncertainty about the next move for APT.

Additionally, trading volume has decreased by nearly 26%, signaling reduced participation in the market. The drop in volume often indicates a lack of conviction from traders, further highlighting the indecisive nature of the market at present.

Despite this, some platforms, such as Binance and OKX, show a long/short ratio of 3.07 and 2.39, respectively, reflecting a slightly bullish sentiment from traders on these platforms. However, the 24-hour long/short ratio has moved closer to parity, with a slight leaning toward short positions, suggesting that there is still significant caution in the market.

The liquidation data also shows that long positions dominate, with approximately $2.36 million in liquidations. This indicates that bulls are still attempting to hold their ground, despite the recent price correction. If the price fails to hold the $10.35 support, more liquidation could occur, further adding pressure to the market.

Technical Indicators and RSI Analysis

Looking at the Relative Strength Index (RSI), APT’s current reading of approximately 56 indicates a state of indecision among traders. The RSI is a momentum indicator that measures the speed and change of price movements. A movement below the 50 level could signal renewed bearish momentum, while a jump above 60 could trigger more buying pressure and further upside for APT.

Given the mixed sentiment and key technical indicators pointing to indecision, the outcome of the current support test will be crucial in determining the next direction for Aptos. Traders should keep an eye on Bitcoin’s performance and broader market trends, as these factors could heavily influence APT’s price action in the coming days.

Conclusion: Key Levels to Watch for Aptos

Aptos (APT) is at a critical juncture, with its price retesting important support levels after a recent correction. The ability of the bulls to defend the $10.35 support zone will be key to determining whether Aptos can continue its upward trajectory or enter a consolidation phase. A bounce from this support could lead to a retest of the $13.75 resistance and potentially higher prices. On the other hand, a breakdown below $10.35 may signal further downside, with consolidation possible near the 50-day and 200-day EMAs.