Nov 7, 2024
6thTrade
Aptos (APT) Poised for Upside Momentum After Reaching Key Fibonacci Levels; Network Activity Supports Bullish Outlook
Aptos [APT] has been undergoing a period of bearish correction since the final week of October. After a sustained rally from mid-September, APT entered a correction phase, pulling back by approximately 30% from its recent October peak. However, recent price action suggests the cryptocurrency is now poised to resume its upward momentum. $APT
Fibonacci Support and Key Price Levels
The retracement found a critical support range between $7.68 and $8.43, defined by the Fibonacci retracement level derived from APT’s September low to October high. The asset touched a low of $7.74 earlier this week, bouncing back almost precisely within this calculated support zone. This reaction confirmed the validity of the Fibonacci range, marking it as a potential pivot point for APT’s price.
Since hitting this low, APT has demonstrated a promising recovery, rallying approximately 21% to reach a current price of $9.38. Despite this significant bounce, the asset has room for additional gains, with around 19% upside remaining before it revisits its October highs. This aligns with continued bullish sentiment, suggesting the possibility of more sustained upward movement for APT in the coming weeks.
Evaluating Aptos Network Activity and On-Chain Health
The Aptos network has been displaying encouraging on-chain metrics, which may further support APT's bullish prospects. Address growth, a key indicator of network adoption, has been robust in the latter half of 2024. Daily active addresses on the Aptos blockchain surged to over 1.27 million in June, marking the highest level recorded so far. While the network’s activity has experienced fluctuations, address growth has been consistent, reaching up to 808,313 active addresses recently.
This increase in active addresses is a sign of healthy network usage and growing interest in the Aptos blockchain. The uptick in daily active addresses has paralleled a rise in overall user transactions, which initially peaked at 6.86 million on October 26. However, a brief lull ensued, with transactions dipping to around 1.77 million by November 2. Since then, transaction levels have gradually recovered, reaching 3.11 million transactions as of November 5.
Market Sentiment and Potential Impact of External Factors
The decline in transaction activity in late October and early November was likely influenced by external market uncertainties, including anticipation surrounding the U.S. elections. With the conclusion of this event and renewed market enthusiasm, APT’s outlook could benefit from an increase in positive sentiment.
Moreover, the U.S. election results, which saw a win by Trump, are expected to reinvigorate the markets, potentially contributing to APT's rally. Combined with sustained network utility, a growing number of addresses, and recovering transaction volumes, APT appears positioned to continue its recovery. However, traders should remain mindful of the potential for increased volatility, which could bring about large, unexpected pullbacks.
Outlook for APT: Caution with an Eye on the Upside
While current indicators suggest a favorable outlook for APT, the market remains susceptible to fluctuations. Investors are encouraged to stay vigilant, as sudden shifts in sentiment could introduce volatility. Given the strong network fundamentals and recent price action, Aptos may have the foundation for a continued recovery. Nonetheless, caution is advised amid ongoing market developments and potential external influences.
Source: Aptoscan
As APT progresses through this critical phase, the asset’s performance in the coming weeks will likely hinge on sustained network activity and broader market conditions. With an optimistic Fibonacci pivot and positive on-chain trends, APT presents a compelling case for potential growth, but only time will tell if it can maintain this upward trajectory.
Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and may lead to substantial financial loss. Always perform your own research and consult a qualified financial advisor before making any investment decisions. The opinions expressed are solely those of the author and do not represent the views of the publisher or its affiliates. Investing in cryptocurrencies involves inherent risks, and past performance is not a reliable indicator of future results. Please exercise caution.