The cryptocurrency of the hour, Aptos (APT), is losing bullish momentum and heading for a correction. Dubbed a “Solana Killer,” the APT token was launched last week, attracting the attention of market participants.
The hype around APT generated over $150 million in Open Interest, $3 billion in futures volume, and $1 billion in spot volume in less than a day. At the time of writing, Aptos trades at $8.70, with a 10% loss in the last 24 hours alone.
After 1 day: $150 mil open interest, $3 bil futures volume, $1 bil spot volume…
This is going to suck so much liquidity from the market.$APT https://t.co/iMupyE21It
— Byzantine General (@ByzGeneral) October 19, 2022
Aptos Stepping Into The Danger Zone
As seen in the chart below, APT’s price hit an all-time high of $10.2 before crashing into its current levels. The cryptocurrency has been trading sideways in a tight channel over the past two days, but the price action hints at further downside pressure.
According to a pseudonym analyst, Aptos sits at critical support north of $8.11. If the token fails to hold its current levels, the price might return to the pre-rally region.
As seen in the chart below, this downside move could retrace APT’s price back to the $7 region. If that zone operates as support, the token might prevent more downside and follow the general sentiment in the market, which hints at bullish momentum.
Otherwise, the next support area is around $6.7, possibly lowering its launch levels. The pseudonym analyst said the following about APT’s price action and the crypto market in general:
APT Bounce here, or it’s heading down to the green zone, I reckon (…) A lot of assets, including $BTC & $SPX, are breaking above the 4H 200MA & EMA’s. This tends to be a good indication of a low to mid timeframe reversal. Of course prices do have to hold these levels in case of a retest to confirm such a reversal.
Traders betting on further downside pressure should be wary; current support levels might hold solely on cryptocurrency-generated hype. In addition, the team behind PancakeSwap will launch this protocol on Aptos.
The implementation will include PancakeSwap’s native token CAKE, with the potential to onboard its users. The team behind the crypto exchange said:
Aptos is the first blockchain which PancakeSwap will be fully integrated with. PancakeSwap will be deploying its CAKE token natively on Aptos along with its key products, making the CAKE token truly multichain for the first time (…). Additionally, Aptos and PancakeSwap users and projects will be able to enjoy all the core beloved products of PancakeSwap such as Swap, Farm, Pools and IFO.
It remains to be seen if this exchange implementation on Aptos will persuade PancakeSwap users to adopt the platform.