Aptos [APT] has been in a bearish retracement since the last week of October. However, its performance over the past two days suggests it is ready to resume the bullish trajectory seen since mid-September.
APT has recently fallen 30% from its October peak. However, the price range of the pullback is worth noting.
This is because the expected pullback is anticipated to end in the range of $7.68 to $8.43 — a range selected based on the Fibonacci retracement levels from the September low to the October high.
Earlier this week, APT dipped to a low of $7.74, followed by a bullish reversal, indicating that the Fibonacci retracement area has been accurately identified.
Since then, the cryptocurrency has risen about 21%, with a price of $9.38 at the time of writing. Despite the rebound, APT still has 19% upside potential before reaching the low of October.
Assessing Aptos network activity
Will the activity on the Aptos network support the recovery of APT? The network has experienced growth in several key areas. For example, so far, Aptos has seen strong address growth in the second half of 2024.
In June, the number of daily active addresses peaked at over 1.27 million, marking a historical high. The minimum level of daily active addresses in the second half of 2024 is slightly below 50,000 addresses.
Meanwhile, the number of addresses has continued to grow over the past three months, peaking at 808,313.
The surge in daily active addresses indicates that the network is being used well.
This outcome is also reflected in daily user transactions, although the trading volume saw a significant decline by the end of November.
On October 26, the network's trading volume reached 6.86 million transactions, but as of November 2, the trading volume dropped to 1.77 million, the lowest level in the past 10 days.
However, the trading volume of Aptos has been recovering since then, reaching 3.11 million transactions as of November 5.
The trading volume has slightly declined since the end of September, consistent with the uncertainty before the elections. However, with Trump's victory, the market is expected to see more recovery and excitement.
A healthy network utility combined with an overall bullish sentiment may contribute to APT's recovery in the coming weeks.
However, as market volatility increases, investors should also be cautious of unexpected sharp pullbacks.
