Aptos price braces for volatility as $23.85 million worth of APT due to flood markets in a cliff unlock

• Aptos price could record increased volatility this week, with 4.54 million APT tokens worth $23.85 Million due for unlocks on October 12.
• Ahead of the previous unlocks on September 12, the price dropped 15% but corrected 7% post-event, thus volatility.
• Large token unlocks typically free up liquidity and increase selling pressure on assets within two weeks of the unlock event.

Aptos (APT) price has not shown any directional bias for almost 1.5 months now, juggling between a fixed market range. However, investors have been active in responding to developments in the Aptos ecosystem, and this could intensify this week as community members prepare for another event on the calendar.

Also Read: Counterfeit Aptos token deposited on Upbit leads to APT withdrawals being temporarily suspended

Aptos price braces for volatility

Aptos (APT) price has been oscillating between the $6.22 and $4.95 market range. One incident has contributed to this volatility, the cliff token unlocks that happened on September 12. The situation would have been worse for APT holders had the FTX exchange’s $3.6 billion crypto liquidation gone a different way.

On October 12, the Aptos ecosystem will be unleashing 4.54 million APT tokens to the market, worth approximately $23.85 million. With large token unlocks freeing up liquidity and increasing selling pressure on assets, APT holders should brace for increased volatility around Aptos price. Tentatively, the reverberations of such an event span the market within two weeks of the unlock event. 

Aptos token unlocks

Aptos price outlook ahead of token unlocks event

In the previous unlocks event on September 12, Aptos price recorded significant price fluctuations within two weeks of the event as tokens were allocated to the foundation and the community. Notably, while the foundation may not be willing to sell, community members could very well cash in for a quick profit.

Ahead of the event, however, Aptos price could fall, akin to the previous event where APT value dropped 15% before rising 7% before and after the event respectively. The dip came as token holders rushed to avoid being caught as part of exit liquidity.

On this account, Aptos price is likely to start falling this week, potentially reaching the $4.95 support floor. Such a move would constitute a 5% slide below current levels. Already, the Relative Strength Index (RSI) is pointing to this effect, slipping below the 50 midline with an overall bearish inclination. A break and close below $4.95 could begin a new downtrend towards the $4.89 range low.

APT/USDT 1-day chart

Conversely, increased buying pressure could send Aptos price north, possibly breaking above the 50-day Exponential Moving Average (EMA) at $5.59. A decisive candlestick close above this moving average would invalidate the bearish thesis. In a highly bullish case, the gains could extend for APT to hit the $6.22 market value, 20% above current levels.

---