The crypto markets are rebounding, with the whole sector rising by about 4% in the past 24 hours. Among the top 100 cryptos by capitalization, Aptos [APT] led with gains of 18% during this period.
The rally comes as APT prices reflect some of the major network upgrades that occurred this year, including the capping of supply. These upgrades are attracting a lot of activity on the Aptos blockchain. Is APT set for another 37% hike?
APT breaks out, eyes $1.50 target
The 6-hour chart showed APT’s price was breaking out of an ascending triangle pattern. The price action flipped above the Ichimoku Cloud, indicating a shift in market structure.
The altcoin reclaimed the $1 mark, with the actual move starting at around $0.90. This was clear, as the Volume Profile showed liquidity was maximum at $0.90 and $1, indicating high activity.
Traders could anticipate a 37% move. That would see APT price surpassing the $1.40 level.
However, the altcoin was still trading inside a massive falling trend channel on the three-day chart. The mid-level of the channel was around $1.40 to $1.50.
Interestingly, Aptos’s price was holding above a major support at the $0.80 to $0.90 zone, indicating reversal momentum was building. This zone coincided with the channel’s support.
The short-term outlook was shifting bullish, but the altcoin was still bearish technically on the bigger timeframes.
What’s driving this shift in structure?
Following the Decibel upgrade early this year, APT rallied, but the momentum cooled off.
The community has once again passed a proposal to reduce staking rewards to 2.6% from 5.19% and increase gas fees by 10 times. The Head of Research at Aptos Labs, Sasha Spiegelman, discussed how these updates lowered block times, increasing the speed of transactions.
Right now, the Decibel upgrade appears to be driving the changing short-term outlook due to the increasing trading activity.
The on-chain trading engine, which launched Decibel Trade, surpassed $1 billion in cumulative volume in only a month of going live. However, as per DefiLlama, the Total Value Locked (TVL) was at $44 million, declining but still stable.
The revenue from these activities was also growing, standing at $4.35 at press time.
Head of Foundation at Decibel outlined why Aptos was powering the global trading engine. The same reasons have seen Aptos become a force among institutions.
For instance, Mastercard’s Crypto Partner Program included Aptos, among other chains. Moreover, the altcoin was seeing growth in real-world assets (RWA) for Ondo Finance [ONDO].
Final Summary
- Aptos rallies 18% in 24 hours as trading volume on Decibel surpasses $1 billion in a month.
- APT was aiming at the $1.50 level, but the price action was still trading in a bear market structure.
