YEREVAN (CoinChapter.com) – APT token price flatlined at $7.5 in the previous week after a choppy performance month-to-date. Notably, the coin belongs to Web3-oriented company Aptos Labs, which launched its Mainnet on Oct 17 after raising $200 million in Q1 2022.
The APT price rallied nearly 300% throughout January 2023 on the back of rising investor interest in its NFT sector. Months after, the interest fizzled out, and the project gradually pared most of its January gains. Meanwhile, it could see another drop before mid-July. Here’s why.
Aptos technicals show a 35% decline ahead
The APT token has been trading within a technical pattern dubbed the falling wedge since the mentioned peak in Jan 2023. The latter is a bullish reversal pattern that consists of two converging trendlines with a similar slope and a significant mid-range. The coin price then loses altitude and price swing through consecutive support and resistance retests.
As noted, the falling wedge is a bullish reversal pattern. It typically predicts a bullish move equal to the wedge height after the underlying asset breaks above the resistance.
APT token approached the setup’s upper trendline on June 26. However, as of the European session, a bullish break is not likely. The trading volumes have been declining for the previous week, which points to investors’ low expectations.
If the APT price gives in to the selling pressure and retests the resistance, the next plausible target would stand at the support, or 35% lower than the current value.
Also read: APT Price Swings 273% In Two Weeks With Rising Community Interest in Aptos NFT.
Moreover, there’s a death cross approaching between the 100-day and 200-day exponential moving averages (EMA-100 and EMA-200). A death cross is a result of the price action and not a causal factor. However, it could put additional strain on the APT bulls, who, from the looks of it, are not very keen at the moment.
Aptos on-chain metrics are undecisive
According to the Aptos scanning website Aptscan.ai, the project’s number of daily active users has been steady throughout the year, despite the price deficit.
However, the network activity has declined, as did the number of new tokens and the number of new NFT collections minted on the blockchain.
Also read: Bitcoin ETF Enjoyed Biggest Weekly Inflow In A Year As BTC Price Tries To Hold $30K.
Given the lowering activity on the blockchain, it is unlikely for APT to climb over the mentioned resistance in the upcoming sessions. Thus, a 35% decline approximately by mid-July is a possibility.
