Aptos presents shorting opportunity, but resistance lies ahead

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion.

• The vary formation of the previous three weeks was one thing to be careful for.
• Bears can look ahead to a rejection to brief, however warning was warranted as a result of robust short-term upward momentum.

In a current evaluation, Aptos’ [APT] pattern was highlighted as bearish on the upper timeframes. There was a bullish order block on the each day timeframe at $8. On the time of writing, Aptos beat the $8 resistance degree and was near the $8.5 mark.

Learn Aptos’s [APT] Worth Prediction 2023-24

Nevertheless, vary highs remained untested. It was thus doable that Aptos may see a transfer towards this zone to gather liquidity by trapping the late patrons. Can merchants look to brief APT quickly?

Vary highs and liquidity hunts

Supply: APT/USDT on TradingView

Evaluation of a number of timeframes can typically get tough. The upper timeframe bearish bias meant merchants can search for shorting alternatives as they’ll seemingly be the safer possibility. But, if Aptos climbs above $8.56, it would break the bearish market construction on the 4-hour chart.

Will the bias be bullish then? Technically, sure, however context is essential. Over the previous three weeks, Aptos has traded inside a spread (orange). The vary prolonged from $7.73 to $8.82, with the mid-point at $8.3.

The worth motion has revered the mid-point in addition to the vary extremes, in current occasions. Subsequently, a shorting alternative may come up on the $8.8 degree, with a run as much as $9 additionally a chance to pretend out the late bulls.

The RSI confirmed robust bullish momentum, and the OBV rose larger as properly. This mirrored the bullish momentum of the previous few days. However it was unlikely that the bulls may stick with it, particularly if Bitcoin [BTC] faces a rejection from $27.8k on 29 Might.

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The speculator sentiment leaned strongly in favor of bulls

Supply: Coinalyze

Measured from the swing low on Friday at $7.82 to the swing excessive on Sunday at $8.7, Aptos has registered features of 11.27% inside three days. This was good motive for the futures market members to have a bullish view of the market.

This was seen on the Open Curiosity chart from Coinalyze. The OI fashioned a gradual sequence of upper lows since Thursday, 25 Might, and surged by round $8 million on 28 Might. It remained to be seen if the bulls can sustain the stress. The previous month’s value motion implied {that a} reversal on the vary highs was the extra seemingly final result.