Aptos (APT) price has not shown any directional trend for almost 1.5 months. Thus, it oscillates between a fixed market range. However, investors have been active in responding to developments in the Aptos ecosystem. Meanwhile, that may intensify this week as community members prepare for another event on the calendar. Crypto analyst Lockridge Okoth evaluates the impact of this event on the altcoin price.
4.54 million APTs will enter the market with the Aptos unlock event
Aptos (APT) price is oscillating between the market range of $6.22 and $4.95. One event that contributed to this surge was the cliff token unlocks that took place on September 12. The situation could have been worse for APT holders if FTX exchange’s $3.6 billion crypto liquidation had gone differently.
On October 12, the Aptos ecosystem will release 4.54 million APT tokens worth approximately $23.85 million. Major token unlock events release liquidity and increase selling pressure on assets. Therefore, APT holders should be prepared for increased volatility around the altcoin price. Tentatively, it is possible to see the effects of such an event within two weeks of the unlocking event.
Aptos token unlock eventAltcoin price outlook ahead of token unlock event
As you follow from Kriptokoin.com, in the previous unlock event on September 12, the tokens went to the foundation and the community. That’s why the altcoin saw significant price fluctuations in the two weeks after the event. In particular, it is possible that community members would prefer to make a quick profit, even if the foundation is not willing to sell. However, ahead of the event, Aptos price may drop similar to the previous event where the APT value dropped 15% before increasing by 7% before and after the event respectively. This drop occurred as token holders rushed to avoid being caught as part of the exit liquidity.
Therefore, the Aptos price is likely to start falling this week. Thus, it is possible for the altcoin price to potentially reach the $4.95 support base. Such a move would mean a decline of 5% below current levels. Currently, the Relative Strength Index (RSI) indicates this effect. It is also shifting below the 50 mid-line with an overall bearish trend. A breakout and a close below $4.95 could start a new downtrend towards the $4.89 low range.
APT 1 day chartConversely, increased buying pressure is likely to send the altcoin price north. Most likely, this move will push APT price above the 50-day Exponential Moving Average (AMA) at $5.59. Therefore, a clear candlestick close above this moving average will invalidate the bearish thesis. In the event of a strong uptrend, it is possible that gains could extend until APT reaches a market cap of $6.22, which is 20% above current levels.
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