The post Aptos (APT) Experiences Buying Volatility After Recent Dip! Is The Price Preparing For Recovery? appeared first on Coinpedia Fintech News
In recent hours, the Aptos token experienced significant price volatility, triggering selling due to hours of network disruptions. Now that the network is back to stability, there’s an upswing in purchasing interest for APT, with the price set for a rebound from the dip. Additionally, current on-chain indicators are bullish, triggering a positive market sentiment for buyers.
CVD Ratio Makes A Positive Slope
After the downturn in Aptos value, holders of long positions rushed to offload their stakes, as reflected in Coinglass data, revealing roughly $100K of long positions being liquidated, contributing to the downward trend. However, with the network regaining its footing and the price rebounding from a low of $4.7, there was a noticeable increase in the accumulation and aggressive buying of APT tokens.
Consequently, the open interest (OI) figures rose from $85 million to $88 million in the last few hours, indicating a growing interest in future trades. Additionally, the CVD spot has made a positive slope as it surged to the North and is currently trading at -1.146.
For a trader, this is a pure buying opportunity. When the CVD line showcases a positive slope, it indicates a rising demand for the asset, suggesting that buying opportunities are happening.
On the other hand, a negative slope in the CVD line points to an increase in sellers, accompanied by a declining demand. Typically, this serves as a signal to sell, prompting traders to look for indications to offload their holdings.
The long/short ratio has made a surge recently as it hovers at 1.0346. This suggests that the market is now leaning toward buyers as long-positions now dominate with 51%. Additionally, intraday traders received a boost from a positive funding rate, further strengthening the support levels.
What’s Next For APT Price?
APT price successfully bounced back from the solid support level of $4.7, breaking above the bearish trendline recently. Yet, the extended wick on the candlestick indicates active selling by the bulls during upward rallies. As of writing, Aptos price trades at $5, surging over 0.9% from yesterday’s rate.
Signs of declining bullish momentum are apparent as the price struggles to hold momentum around the 20-day EMA, and the RSI drops from the midline.
With this opportunity, the bears are likely to attempt a rally, driving the price below the support of $4.7. Achieving this move could eliminate any bullish hope above the EMA200 trend line. As a result, APT price might head toward the bearish channel of $3.1-$3.5.
Conversely, this bearish scenario will be challenged if the price makes a further bullish reversal, surging above the EMA200 trend line. In that case, APT price might attempt to test buyers’ patience at $5.7.
