- Aptos faced resistance at $6.19; breaking through could spark a rally toward $7.82.
- Social Dominance and Volume were declining, raising concerns over the sustainability of the rebound.
Aptos [APT] has recently flashed a buy signal, as indicated by the TD Sequential on its weekly chart. This suggests the cryptocurrency could be on the verge of a significant rebound.
At press time, Aptos traded at $6.18, reflecting a modest 1.19% increase in the last 24 hours.
However, the crucial question remains: will this signal lead to sustained upward momentum or simply act as a short-term bounce before further challenges arise?
Can Aptos overcome crucial resistance levels?
Aptos has seen notable price fluctuations over the last several months. After reaching its high of $9.80, the price has faced substantial resistance and is currently hovering around $6.19. If APT can break through this resistance, it may rally toward $7.82 and $9.80.
However, if the resistance remains intact, APT could face setbacks, with critical support at $5.68. Upcoming trading sessions will be essential in determining whether the cryptocurrency can break free from consolidation and head toward higher prices.
At the time of writing, the Relative Strength Index (RSI) for Aptos stood at 38.35, indicating the cryptocurrency is nearing oversold conditions.
This suggests APT could see a strong rebound if buying pressure increases.
Source: TradingView
What do recent liquidations mean for APT?
APT has witnessed significant liquidations recently, totaling $9.96 million. Most of these liquidations came from short positions on exchanges, where short-sellers were caught off guard by the price increase.
This surge in liquidations could add fuel to the current rally, pushing the price higher if more short positions get liquidated.
In the short term, this could work in Aptos’ favor, creating additional buying momentum.
Source: Coinglass
Is the decline in Social Dominance a concern?
Aptos’ Social Dominance and Volume have been declining, raising concerns about the sustainability of its price movement. Social Volume recently peaked at just 16 mentions, while social dominance is down to a mere 0.072%.
This drop suggests waning interest in Aptos, which could hinder its ability to maintain upward momentum.
If the decline in social activity continues, it may become increasingly difficult for Aptos to maintain its recent gains. Therefore, a rebound in social engagement could be key to sustaining the current price movement.
Source: Santiment
Conclusion: Can APT maintain its momentum?
Although the TD Sequential Indicator flashed a positive buy signal, APT faces several obstacles that could impact its ability to maintain upward momentum.
The cryptocurrency needs to break through key resistance levels, and a revival in Social Dominance and Volume is essential for sustaining its rally.
If APT can surpass these hurdles, it could extend its recent gains and head toward higher levels. However, without increased market interest and a sustained price breakout, the rally could be short-lived.
Therefore, while APT shows promise, its ability to maintain momentum remains uncertain and highly dependent on key factors in the coming days.
