The Aptos price is trading between the most important support and resistance levels. Whether it breaks up or down may determine the future trend of the APT
Aptos is approaching the low of the year
Aptos is a first-level blockchain built using the Move programming language.. It can be called the conceptual successor of the now abandoned project Diem by Meta*.
Aptos’ ultimate goal is to replicate the Web2 cloud infrastructure in a decentralized form and create a comprehensive blockchain solution that will help to implement Web3 faster.
At the same time, the team is developing the DApps ecosystem.
As the results of technical analysis show, the price of the coin has been declining since early February, moving under the descending resistance line.
As long as this line persists on the chart, the trend can be considered bearish.
At the time, APT was trading above the $10.20 long-term horizontal support area.. This area is important because it resisted the market earlier in October 2022 and then turned into support.
In early May, Aptos made a bearish breakout of this area, which is a sign of a bearish trend.
Then on May 12, the price hit a low of $7.70. This low confirmed the horizontal area of $8 as support. APT is now trading in a range between the average prices of $8 and $10.20.
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APT forecast: growth is possible
Technical analysis of the 12-hour timeframe gives a mixed outlook for the price of Aptos, as there are arguments in favor of both bullish and bearish scenarios.
On the one hand, the price rebounded from a confluence of support levels around $8.20.
In addition to the horizontal support marked earlier, this level also coincides with the support line of the descending parallel channel.
This pattern is considered a corrective pattern, so its southerly direction implies that the broader trend in the currency is bullish and the price will eventually break north out of this channel.
However, the price also lost the most important support level of the Fibo 0.618 correction.
Fibonacci levels are traditionally considered the most probable springboards for stopping and reversing the price after a significant advance in any one direction.
As expected, at these levels, the market can win back some of the distance traveled and only then resume the movement in the original direction.
In addition, they can determine the limit levels of price movement.
The Fibo of 0.618 often plays the role of the bottom if the decline in price was only a correction.. Thus, since the correction is not over here, its loss is a sign pointing to a bearish trend on Aptos.
In addition, the RSI index shows mixed readings. Although the indicator broke out of oversold territory (green circle) and is rising, it is still below the 50 level.
So the outlook for APT is likely to depend on whether price makes a bearish breakout out of the channel or breaks northward beyond the downside resistance line.
Because of mixed price and RSI signals, both options are still possible.