- This new regression channel, established on the 4-hour time frame, could propel APT towards $7.5.
- The market has given mixed signals, providing positive, neutral and negative short-term forecasts.
Aptos (APT) has recently been through a rough market cycle and has suffered a 6.63% decline. Upon reaching the support level of its current regression channel, it has registered a 3.95% increase over the last 24 hours.
Although the outlook for APT is bullish, there is an underlying bearish sentiment, which requires careful analysis of both trends.
Major bullish confirmation
Between April and August, APT evolved in a regression channel pattern.
This pattern is characterized by a downward diagonal movement between two defined levels (the upper and lower lines) that act as supply and demand zones.
The pattern is bullish overall, and it is confirmed by a break of the upper line of the channel. Recently, APT broke out of the daily regression channel, which suggests an increase in buying pressure.
However, it is now contained within another regression channel on the 4-hour time frame.
Source: TradingView
Such a move reinforces the bullish confirmation.
At press time, APT was trading at the bottom of this regression channel, which aligned with another major support level at $6.25. This alignment indicated strong buying pressure.
This buying interest should drive APT price to the top of the channel at $7.45, which has served as a short-term target. In the long term, a target is projected in the $10 range.
Trader interest remains high
According to a Coinglass liquidation tableAMBCrypto reported that over the past 24 hours, traders were anticipating a decline in APT amid significant liquidations.
Specifically, of the total liquidated of $199.59K, short positions contributed $143.80K, compared to $55.79K for long positions, indicating bullish market sentiment.
This trend suggests increased confidence in APT’s upside potential, potentially increasing its market price.
Source: Coinglass
Additionally, the Relative Strength Index (RSI) – a momentum oscillator that identifies overbought (above 70) and oversold (below 30) conditions – has positioned APT in the neutral zone with a score of 48.73.
It is worth noting that the RSI has been trending upwards, approaching the upper boundary of neutrality. Historical trends indicate that if the RSI breaks into bullish territory (above 50), the APT price is likely to rise in response.
Bears are always nearby
According to NetFlow Coinglass datathe presence of bears remains evident. NetFlow is calculated by subtracting the inflow of an asset from its outflow on exchanges.
Typically, negative flow indicates a bull market, as it reduces the supply of the asset on exchanges.
However, the situation is reversed for APT; it has consistently shown positive NetFlow, indicating increased deposit of APT on exchanges, which increases supply and sales potential.
Currently, the NetFlow for APT stood at $1.59 million over the past 24 hours, a trend that has persisted over the past week.
Source: Coinglass
Read Aptos (APT) Price Predictions for 2024-2025
Additionally, open interest has been declining since the beginning of September. A decrease in open interest suggests persistent bearish sentiment.
If short traders dominate, APT could potentially drop to $5.89 as shown in the chart above.
