On October 19, 2023, Aptos experienced a 5-hour network outage which was a reminder of the challenges and vulnerabilities inherent in the rapidly evolving world of blockchain technology.
Despite celebrating a significant milestone of one year since the launch of its mainnet, Aptos faced an unforeseen setback, potentially due to an influx of transaction volume.
Simultaneously, the ATP token has rebounded with a more than 4% rise from its daily low, reclaiming the $5 mark. The question now is whether it can sustain this upward trajectory and potentially reach $6, and if it does, what would be the significance of such a milestone?
Since reaching its all-time high in January 2023, APT has been on a consistent downward path, ultimately leading to the development of a descending triangle pattern.
The recent rebound from the low on October 11, combined with the asset’s capacity to establish a higher low post-rejection, presents a ray of optimism for investors.
Additionally, the daily chart’s RSI, which stood at 32% on October 12, provides further support to this positive outlook. Historical data reveals instances when the RSI approached oversold territory, such as on August 17 and June 10, followed by substantial downward wicks, indicating robust support levels.
Considering these technical indicators, there is a mounting likelihood that the low reached on October 11 could indeed mark the bottom of this bearish cycle.
A closer examination of APT price on the hourly chart reveals that the recent dip mirrors patterns observed on August 17 and June 10 on the daily chart, characterized by a pronounced wick, suggesting a swift buyer response.
The hourly candle has surged past the significant 0.618 Fibonacci retracement level, a common point for corrective waves. Given the asset’s prior upward movement within an ascending channel marked by a five-wave pattern, it’s plausible that we are approaching the conclusion of the initial impulse’s first two waves.
If this analysis holds true, the current bullish momentum could potentially challenge the descending resistance once more and even break through it. A move beyond the $5.10 threshold would establish a fresh local peak, marking the beginning of a breakout from the descending resistance and strengthening the case for a rally toward $6.
Conversely, a rapid downturn leading to a lower high might indicate fading momentum, potentially paving the way for a deeper decline compared to the low observed on October 11.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.