Aptos [APT] has dropped to a psychologically important lower boundary of $10. The retest of the boundary has both sellers and buyers on edge as they vie for dominance. So far, candlewicks have reached $10, confirming the bulls’ desire to defend the support.
However, a bearish Bitcoin [BTC] and a break below $27k could offer sellers more leverage. The king coin’s price rejection at $30k has set altcoins in extended correction. If BTC retraces further, APT could inflict a bearish breakout and offer more shorting opportunities.
A patterned breakout or rebound – Which way for APT?
On the 12-hour charts, technical indicators – RSI and stochastic RSI, had hit oversold conditions. The oversold condition reinforces the prevailing bearish sentiment but also means sellers may take a break soon.
If that’s the case, buyers could attempt to secure the $10 support. The channel’s lower boundary also lines up with the descending trendline and offers more resistance to sellers.
Ergo, buying at current levels could provide a good risk ratio if APT defends $10 and rallies to the upper channel’s boundary of $14.
A bullish breakout could target the $18 price range. Alternatively, sellers could inflict a bearish breakout, invalidating the above thesis.
The breach could sink APT to $5.95 and could be accelerated if BTC falls below $27k. Notably, the OBV (On Balance Volume) dipped – evidence of limited trading volumes, which could favor sellers.
CVD spot declined
According to Coinalyze, the aggregated CVD (Cumulative Volume Delta) spot declined, reiterating sellers’ increasing leverage in the market. In addition, out of about $930k total liquidations, over $700k worth of long positions have been wrecked in the past 24 hours.
On the other hand, short positions saw only $200k worth of liquidations, indicating longs were paying shorts – confirming the prevailing bearish sentiment.
Although this offers sellers slight leverage, any BTC recovery could deflate bears’ hope. Ergo, investors should track BTC price action alongside sentiment before making moves.