• Aptos price rallied 177%, pushing from $7.01 to $19.31 in roughly a week.
  • The trend-based Fibonacci tool shows APT has extended to the 100% Fib level at $19.31, which is an ideal level to end its uptrend.
  • On-chain metrics suggest that the altcoin has hit a historical local top formation level that could trigger a selloff soon.

Aptos price has undergone an incredible rally over the past week that has caught many investors off guard in a good way. This massive run-up could be coming to an end based on technical and on-chain perspectives.

Aptos price could hint at a local top formation

Aptos price has surged 177% in a week, which saw it propel from $7.01 to $19.31. This explosive move is a combination of an initial rally that pushed it up by 106% to $14.57 and was immediately followed by a 19% downswing to $11.75.

Using the trend-based Fibonacci tool to these three points - $7.01, $11.75 and $14.57, shows three critical extension levels at 50%, 61.8% and 100% at $15.53, $16.43 and $19.31, respectively. The momentum was strong enough to push Aptos price to slice through the first two extensions and tag the third.

As APT retests $19.31, there are two bearish signals - bearish divergence and the unfavorable 30-day (Market Value to Realized Value) MVRV.

The local top formed by Aptos price on January 21 and 25 are higher highs, but the Relative Strength Index (RSI) has produced lower highs. This non-conformity is a clear indication of declining momentum and hints that APT price action might follow soon.

In such a case, the important levels for retracement include the $16.43 and $15.53 support levels.

APT/USDT 1-hour chart

APT/USDT 1-hour chart

Further confirming the local top formation for Aptos price is the 30-day MVRV, which formed a peak at 19.50%. This value is the average profit of all addresses that purchased APT in the past month.

Interestingly, from a historical standpoint, there has been a significant sell-off that occurred in APT after the MVRV entered the 17% to 32% zone and can be seen in the chart attached below.

APT 30-day MVRV

APT 30-day MVRV

While the overall outlook for altcoins might appear to be bullish, investors need to be extremely cautious, especially if Bitcoin price tumbles. A minor pullback in Aptos price may be expected, but if bulls gain momentum and push the price above the $19.31 resistance level, it would negate the bearish outlook.

In this situation, Aptos price could eye the next trend-based Fibonacci extension level at 127.2% or $21.37.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

NEAR protocol could see a rally as it sets out to launch an AI smart contract builder

NEAR protocol could see a rally as it sets out to launch an AI smart contract builder

Near protocol (NEAR) co-founder Illia Polosukhin stated in a social media post on Wednesday plans for NEAR to launch NEAR AI, a user-owned AI system that will allow users to build web3 apps without code on an end-to-end network.

More Near News

US House of Reps passes bill aiming to regulate cryptocurrencies

US House of Reps passes bill aiming to regulate cryptocurrencies

FIT21 bill received massive support as the House of Representatives voted to pass the bill on Wednesday. The White House and US Securities & Exchange Commission (SEC) Chair, Gary Gensler, expressed concerns about the potential impact of the FIT21 bill on investor protections in a statement.

More Cryptocurrencies News

Ethereum bulls await ETF approval as BlackRock, Bitwise, Grayscale submit amended ETH ETF filings

Ethereum bulls await ETF approval as BlackRock, Bitwise, Grayscale submit amended ETH ETF filings

Ethereum (ETH) is trading sideways on Wednesday as BlackRock, Bitwise and Grayscale submitted their amended 19b-4s filings to the Securities & Exchange Commission (SEC). The agency has also begun conversations with issuers on S-1s applications.

More Ethereum News

As Ethereum spot ETF approval nears, these altcoins could explode

As Ethereum spot ETF approval nears, these altcoins could explode

It is not surprising that altcoins related to Bitcoin saw a major rally post-Bitcoin spot ETF approval. Likewise, tokens closely related to Ether could ride the ETF approval wave. Ethereum Classic, Pepe, Floki and other DeFi tokens could gain momentum as the ETH ETF approval deadline nears. 

More Cryptocurrencies News

Bitcoin: Is BTC out of the woods? Premium

Bitcoin: Is BTC out of the woods?

Bitcoin price shows signs of continuing its uptrend, providing a buying opportunity between $64,580 to $63,095. On-chain metrics forecast a bullish outlook for BTC ahead. If BTC clears $70,000, the chances of resuming the uptrend would skyrocket.

Read full analysis

BTC

ETH

XRP