Aptos’ governance token, APT, has experienced a substantial price decline over the past month, amidst a broader downtrend in the cryptocurrency market. The token, which was trading at $5.82 at the time of writing, has plunged over 30%. With increasing volatility, APT faces continued risks.
What’s Happening with Aptos?
The first indicators of rising volatility for Aptos emerged through the Bollinger Bands, which showed a widening gap between the upper and lower bands. These bands gauge market volatility and suggest potential overbought or oversold conditions. The expanding bands during the recent price drop period imply a continuation of the downward trend, revealing weak selling pressure or buying interest at current price levels.
Moreover, the increasing Average True Range (ATR) data confirms this volatility surge. ATR measures market volatility by averaging the range between high and low prices over a specific timeframe. As ATR values climb, it signals heightened market volatility and potential price fluctuations in either direction.
APT Chart Analysis
Despite APT’s falling price, daily trading volume has surged. Last week, while the token price dipped by 18%, trading volume rose by 29%, creating a bearish divergence. This suggests that more market participants are actively selling the asset. If selling pressure remains high, APT’s value could further drop to $5.62.
However, increased trading volume during a decline can sometimes herald a price reversal. If APT undergoes a correction, its price might rise above $5.90, defying the continuing bearish trend.
Key Takeaways
– Monitoring Bollinger Bands can help anticipate volatility changes.
– Rising ATR values indicate potential price fluctuations.
– Bearish divergence between price and volume may signal further declines.
– Watch for possible price reversals if trading volume excessively increases.
Overall, the current indicators suggest significant volatility for APT, and market participants should stay alert to potential price movements in either direction.