APT hit a new 5-month high in the past 24 hours. This is thanks to its continued bullish momentum and extends the gains in September.
On Sunday, APT prices surpassed $10 for the first time since April. The performance highlighted APT’s renewed efforts to break out of the low range it has been stuck in for several months.
This follows a crash between March and July that wiped out gains made in the previous rally.
Is APT about to pull back again? Although its recent gains highlight strong demand, a pullback is still possible.
Although the pair rallied to a fresh 5-month high of $10.68 in the past 24 hours, it has since shown a recovery in resistance levels to further gains.
At the time of writing, APT is trading at $10.08, highlighting the risk of another drop below $10.
The cryptocurrency had previously encountered resistance around $10, raising the possibility that it could experience a mid-week retracement around the same level.
Although there may be a short-term pullback, the cryptocurrency could see more upside before the end of the year.
APT shorts are ready to take over
Although APT has been moving higher, there are some signs of a potential turnaround. For example, the RSI has been making lower highs over the past three weeks, forming a bearish price-RSI divergence pattern.
This suggests that the bulls might be losing momentum.
The bearish divergence suggests that selling pressure could surge. An assessment of APT’s buy and sell volumes shows that this outcome has already occurred.
The latest on-chain data shows a surge in selling volume over the past 24 hours. It is significantly higher than the current buying volume, which may be due to a surge in profit-taking.
While these observations suggest that there is a good chance that APT will encounter some selling pressure, any retracement is likely to be limited.
This is because a large amount of APT demand comes from emerging Aptos network utilities.
Aptos TVL hit a new high of $730.71 million in the past 24 hours. The network’s stablecoin market cap also pushed to a new high in the same period after surpassing $256 million.
These observations highlight a surge in network utility, fueled by increased confidence in the network. These factors could protect APTs from a significant pullback.
