APT Unlocking Event May Be Followed by Temporary Selloff

The tokenomics tracking platform Token Unlocks revealed in a tweet earlier today that a substantial amount of Aptos (APT) tokens will be unlocked on 12 November 2023. According to the post, 20 million tokens will be introduced into circulation, which is estimated to be around 10.8% of the altcoin’s supply.

Token Unlocks also shared that the valuation of the unlocking event will be around $129 million given the altcoin’s current price. Furthermore, the tokens belong to the project’s team and early-stage investors.

APT’s price may decrease during the 24-48 hours following the event given the fact that the cryptocurrency’s supply will be diluted. Investors and traders may be able to gauge whether or not the altcoin’s price may be negatively impacted by the unlocking event by monitoring APT’s price leading up to the unlock.

To counteract the pressure from a potential selloff of the token, the project’s team may elevate APT’s price prior to the unlock as well as build up liquidity in the order books of exchanges that list the cryptocurrency. This may serve as early indications of the predicted drop in APT’s price.

Daily chart for APT/USDT (Source: TradingView)

From a short-term perspective, a noteworthy bearish technical flag was triggered on APT’s daily chart throughout the past 72 hours. During this period, the daily MACD line crossed below the daily MACD Signal line, which signaled that momentum had shifted in favor of sellers.

If this technical flag is validated, APT’s price could drop below the support level at $4.9360 in the coming few days. Thereafter, a daily candle close above this significant price point will put the altcoin’s price at risk of retesting the crucial support level at $4.

Despite the bearish pressure that was present on APT’s daily chart at press time, zooming out on the chart revealed that a descending wedge chart pattern had formed on APT’s chart. This is a bullish chart pattern that, if validated, could result in APT’s price rising to as high as $11.8325 through the course of November 2023.

It may still take a few weeks for the medium-term chart pattern to be validated. Therefore, APT’s price may fall below the $4.9360 support first before entering into the predicted leg up. Following the potential break below this support level, investors and traders will want to wait for APT’s price to close 2 consecutive daily candles above the $6.1895 resistance level.

This will signal a long entry for APT and will also place the altcoin’s price above the multi-week chart pattern. Thereafter, APT’s price may gradually rise above the next major resistance level at $8.8897 before flipping this threshold into support and continuing its ascent toward $11.8325 in the following few weeks.

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