Why Aptos Could Fall Further After Unlocking $51 Million APT

Today begins with Aptos unlocking 11.31 million APT coins worth approximately 51 million USD, increasing its circulating supply.

With the increase in supply, combined with the decline in the broader market and the growing desire of traders to profit, APT is facing increased selling pressure that could exacerbate its price decline.

Aptos Price Weakens Amid High Selling Activity

APT is currently trading at $4.58, recording a 2% decrease in the past 24 hours. During the same period, its trading volume has increased by 10%, indicating a rise in the number of coins being exchanged.

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When an asset's price drops while trading volume increases, this signals growing selling pressure. This pattern shows that more investors are selling their positions rather than buying. Therefore, this trend indicates the APT market is experiencing stronger downward momentum with increasing seller dominance.

Additionally, the coin's Longing/short ratio has decreased, supporting this price decline prospect. Observed on the hourly chart, this ratio is 0.69 at the time of writing.

The Longing/short index measures the ratio of Longing to short bets in an asset's futures market. A ratio above one indicates more Longing positions than short. This indicates an optimistic sentiment, as most traders expect the asset's value to increase.

Conversely, a Longing/short ratio below 1 means more traders are betting on the asset's price decreasing rather than increasing.

APT's Longing/short ratio shows an increasing demand for short positions, as traders position themselves to take advantage of growing price pressure.

Can Aptos Hold Its Ground?

On the daily chart, APT is currently trading at its 20-day Exponential Moving Average (EMA). This puts the altcoin at significant risk, where its next direction could establish the short-term price trend.

The 20-day EMA measures the average price of an asset over the last 20 trading days, prioritizing recent prices. When an asset crosses this level, it signals enhanced momentum and potential upward trend, indicating buyers are gaining control.

Conversely, dropping below this level suggests weakened momentum and could shift to a bearish sentiment, with sellers dominating.

If APT's price clearly breaks below the 20-day EMA, it will confirm that bears have completely regained market control. Such a move could trigger additional selling pressure, pushing APT's price below $4.52.

Conversely, if the 20-day EMA holds as a support floor, it could provide a foundation for price recovery. Buyers entering at this level might push APT's price above $5.01.