Aptos (APT) Bounces Back from 8-Month Low — Full Rebound Unsustainable

Key Takeaways

• APT’s breakdown below the $8.12 neckline confirmed a bearish reversal, leading to the mid-March low of $4.85.
• The Average Directional Index (ADX) at 17.66 suggests weak directional strength, making further upside uncertain.
• Bollinger Bands (BB) are contracting, indicating limited price swings and reducing the chances of a strong rally.
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Aptos (APT) ‘s price fell below $5 on Thursday, March 13, for the first time since August 2024. However, APT has recovered from that decline within the past week, posting an 8.45% price increase.

At press time, Aptos’s price hovers around $5.85. However, the upswing appears to be only temporary, with upper resistance levels ready to limit the rally.

In this analysis, CCN explains why the recovery of altcoin is unlikely to extend in the short term.

Aptos Recovery in Doubt

Aptos price surpassed the $15 mark in December amid the market’s excitement about Donald Trump’s pro-crypto policies. While the U.S. president seems to be delivering on the promise, the tariffs on other countries neutralized the bullish outlook.

As a result of this and rising selling pressure, APT plummeted to $4.85 around mid-March. According to the daily chart, the decline also accelerated due to a head and shoulders formation.

The head and shoulders pattern is a bearish reversal formation, indicating a potential shift from bullish to bearish.

It consists of three peaks, where the middle peak (head) is the highest, flanked by two lower peaks (shoulders), with a baseline (neckline) that, once broken, confirms the downtrend.

As shown below, the neckline of the pattern was at $8.12. But amid a decline in trading volume and demand, Aptos price slid below this level, eventually leading to an extended correction.

Despite the recent bounce in the $6 direction, the Average Directional Index (ADX) reveals that APT might face some issues in climbing higher.

The ADX measures directional strength. Readings over 25 indicate strong directional movement, while those below this value indicate weakness.

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As of this writing, the ADX reading has turned downward to 17.66. If this remains the same or continues to fall, the Aptos price might not continue its recovery.

APT Price Analysis: No Rally Ahead

Looking at the daily chart again, the Bollinger Bands (BB) is contracting. The BB measures volatility, showing how extreme price swings can be.

When the bands widen, it indicates high volatility, indicating notable price swings depending on the position of other indicators.

However, since the BB contracted, it indicates that Aptos’s price is unlikely to experience an exponential rally.

Instead, the altcoin might face resistance near $6.20. Should this be the case, the cryptocurrency’s value might pull back to $4.32.

However, if the toke can breach the 0.236 Fibonacci level, this decline might not happen.

If true, APT’s price might inch toward the 0.618 Fib position at $11.12.The pattern forms a head-and-shoulders configuration.