Aptos price drops to single digits before APT token unlocks: Bull trap or buying opportunity?

Aptos (APT) price dropped below the $10 price level for the first time in almost three months. The slip comes a fortnight after the scheduled unlocking event put 53 million APT tokens into the market, bolstering the bearish pressure.

At the time of writing, Aptos, a Move technology Layer-1 blockchain, is auctioning at $9.98, down almost 3% in the last 24 hours. With this drop, the altcoin has lost a crucial support line at $10.46, which held APT above ground for three consecutive months.

Aptos’ plan to unlock 4,543,478.03 APT tokens will increase circulation by around 0.454%. According to the tokenomics tracker Token Unlocks, around 84.27% of APT tokens are locked besides the gradual unlocks of the fixed amount. It is worth mentioning that crypto enthusiasts on Twitter allege that the APT price is manipulated because such a colossal chunk of the cryptocurrency is still on lock.

With the next token unlock event slated for May 12, chatter around the unlocks event and its potential impact on Aptos price is widespread on crypto Twitter.

Aptos price has investors at crossroads

Aptos price has investors at crossroads, wondering whether the current price action is a bull trap or a buying opportunity. The Proof-of-Stake (PoS) consensus mechanism blockchain cleared up the bugs experienced during its launch, paving the way for a great start to the year. In January alone, the altcoin surged 420%.

Nevertheless, Aptos price movement has recorded a prolonged downtrend in the weekly timeframe, a 19% downswing in the last seven days. This slump followed a rally caused by Elon Musk’s mention of ‘APT’ in a tweet, fueling a brief uptick of almost 15%.  

Traders are trying to determine whether the bearish trend will break below $9.60. Notably, rejected support at this level could see Aptos price clear most gains recorded during the January 2023 rally, potentially causing a free-fall for the token.

Aptos price prediction: Bull trap or buying opportunity?

Based on the current price action, APT allows traders to buy the altcoin at low prices before a breakout. As the countdown to the token unlocks continues, the altcoin is coiling up and could explode by 30% by the first week of May. This would conform to the "sell the rumor, buy the news" narrative. 

The support at $9.60 is crucial for Aptos price, marking the invalidation level for the current bullish supposition. Increasing buying pressure above this level could see the altcoin ascend toward its target. Buyer congestion zones defined by the 100- and 50-day Exponential Moving Averages (EMA) at $11.13 and $11.60 mark pristine entry points for sidelined investors to solidify the prospective uptrend.  

APT/USDT 1-day chart

Conversely, a break below the $9.60 support level could open the drains for Aptos price, causing a value drop toward the $8.10 support level.