- APT recently reached $10.41, a key level that could indicate whether a short-term rally is in store or whether a downturn is more likely.
- Several indicators suggest APT could pull back before heading towards $14.42, a short-term target for the token.
The past month was a remarkable period for Aptos [APT]which rose by 63.30%. In the last 24 hours alone, strong buying momentum has pushed the price up 18.17%, even as most altcoins struggled in a volatile market.
Despite the recent gains, AMBCrypto’s analysis suggests that APT is headed for another rally, which could potentially contribute to the recent upward momentum.
A short-term rally remains a game for Aptos
APT appears poised to continue its upward momentum after trading above $10.41, where it faced significant selling pressure at this level.
In the last 24 hours, APT’s trading volume is up 174.19% to $581.21 million, while its market capitalization is up 20.86% to $5.17 billion.
If Aptos wants to reach its short-term target of $14.42 – a level identified as containing significant liquidity – it must first break the resistance at $10.41. This means that the volume should maintain a positive increase as recorded.
Source: trading view
If APT fails to clear this resistance, it will likely return to the $8.39 support level, where it may look for renewed buying momentum to continue its upward trajectory.
AMBCrypto’s analysis of current technical indicators suggests that APT is likely to experience a pullback from its current levels.
A slight dip before the rally to the $14.42 target
APT is likely to experience a small pullback before resuming its rally towards the short-term target of $14.42, according to key technical indicators such as the Relative Strength Index (RSI) and Chaikin Money Flow (CMF).
The CMF, which measures the inflow and outflow of liquidity to assess market sentiment, indicates a small sell-off in the market, indicating that some traders are cashing out.
Likewise, the RSI has shown a slight decline, with momentum barely trending downward. If this trend continues, the price of APT is expected to follow suit with a short decline.
Source: trading view
However, despite these indicators, the market remains largely bullish. Both the CMF and RSI are still in positive territory, indicating that the overall trend remains upward.
AMBCrypto’s analysis also identified other supporting factors that indicate APT is likely to remain in bullish territory following this expected retracement.
Rising open interest and funding rates indicate an Aptos rally
At the time of writing, APT is seeing positive momentum in both Open Interest (OI) and Funding Rates, leaving the company well positioned for a potential rally and maintaining its bullish outlook.
Open Interest, which measures the number of unsettled derivative contracts on APT, has shown a significant increase.
Read Aptos’ [APT] Price forecast 2024-25
Data from Coinglass indicates that OI increased by 61.13% to $264.74 million, indicating that longer contracts have been opened, with existing contracts being retained.
Source: Coinglass
Likewise, the financing rate has increased remarkably, reaching 0.0148%. This means that long positions pay shorts to balance the futures and spot market prices, further supporting bullish market sentiment.