Today, Aptos unlocked 11.31 million APT (equivalent to about 51 million USD), increasing the circulating supply.
The strong increase in supply, combined with the overall market weakness and traders' profit-taking sentiment, is putting APT under greater selling pressure, which could cause the price to continue to drop further.
APT weakens as selling activity increases.
Currently, APT is trading around $4.8. During this time, according to data from Santiment, trading volume has increased by 10%, indicating an increase in the number of tokens being traded.
When prices fall but trading volume increases, this often reflects strong selling pressure, meaning more investors are offloading than buying. Therefore, this trend indicates that the APT market is experiencing a stronger downward trend with increased dominance from the sellers.
The Long/Short ratio of APT also reinforces the bearish outlook. On the 1-hour chart, this ratio is at 0.69 – indicating that the number of short positions is overwhelming the number of long positions, reflecting negative sentiment as many traders bet that prices will continue to fall.
The Long/Short ratio measures the Long/Short betting ratio in the futures market of an asset. A ratio above 1 indicates more Long positions than Short positions. This reflects an optimistic sentiment, as most traders expect the value of the asset to increase.
Conversely, a Long/Short ratio below 1 means that more traders are betting on the asset's price falling.
Will APT hold important support?
On the daily chart, APT is currently trading at the 20-day EMA line – a level that can determine the short-term price trend.
The 20-day EMA is an indicator that measures the average price of an asset over the last 20 periods. If the price is above the 20-day EMA, it signals increasing momentum and potential upward trends, indicating that buyers are in control.
Conversely, falling below this level indicates weakening momentum and may shift to a bearish sentiment, with sellers in control.
If APT's price falls sharply below the 20-day EMA, it will confirm that the bears have regained full control of the market. This move could trigger additional selling pressure, pulling APT down below $4.52.
Conversely, if it successfully maintains the 20-day EMA line as a support level, it could lay the foundation for a rebound. Buyers entering at this level may push the price of APT above $5.01.