Key Takeaways:
- APT jumped 10% in a day, with a hint at a possible over-90% bullish continuation.
- The bullish falling wedge is supported by the RSI divergence.
- On-chain metrics turned positive despite grim predictions.
YEREVAN (CoinChapter.com) – Aptos (APT) jumped 10% to reach $8.2 by the European session on July 4 and brought the weekly bullish streak up to 20%. Moreover, the token broke significant resistance, hinting at a possible over-90% rally in the books for Aptos.
APT in a bullish falling wedge
In detail, 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.
However, 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 jumped above the resistance on July 3, and briefly retested the said line on July 4, confirming the falling wedge.
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Notably, the relative strength index (RSI) also pointed to a possible bullish reversal. While the price action kept printing lower highs, the RSI swing highs connected into a slightly up-sloping line.
Aptos on-chain metrics support the bullish stance
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. Moreover, the DAU number picked up month-to-date.
Furthermore, the network activity has also picked up in July, as did the number of new tokens and the number of new NFT collections minted on the blockchain.
Given the recovering activity on the blockchain, it is possible for APT to reach the mentioned target line in the upcoming quarters. However, Aptos price action still depends on the broader market conditions. Thus, traders should closely monitor the altcoin market to foresee the possible APT fluctuations.
