APT recovery threatened as Aptos braces for supply shock amid $140M token release

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Written on Dec 11, 2024

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The project will unlock 2.12% of its supply tomorrow, December 12.
The massive release has fueled worries due to possible magnified selling pressure.
APT price stares at bearish moves in the near term.

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Digital assets traded upward today as altcoins recovered from last week’s double-digit declines on BTC’s latest uptick past $98K.

Meanwhile, Aptos (APT) remains in the woods after gaining over 5% over the past day.

Ecosystem developments signal impending dips for APT from current levels.

Data shows the project awaits a massive token unlock event, which might catalyze substantial volatility for Aptos prices.

Supply shock weakens APT momentum

Aptos’ underperformance reflects the bearish wave that swept the crypto market recently.

Meanwhile, the upcoming token release, scheduled for December 12, added to the downbeat mode.

Token discharges involve unlocking previously locked digital assets to the public.

The approach is vital in ensuring a strategic and organized asset distribution to control circulation while safeguarding market stability.

Cryptorank data shows the Aptos ecosystem will flood the market with 11.31 million APT coins, representing 2.12% of the total supply on December 12.

The tokens are worth $140.11 million at current prices.

The massive token release could trigger substantial volatility for APT.

Buying momentum would be necessary to counter the looming supply shock, which could see Aptos’ price plummeting.

APT’s latest performance confirms the waning momentum.

Its market cap surpassed $8 billion as prices touched monthly highs of $15.25 on December 7.

Nevertheless, the figure has plunged to $6.56 at press time, losing approximately $2 billion within five days.

The sharp drop confirms robust selling activity behind APT’s current price actions.

APT price actions

Aptos trades at $12.30 after gaining over 5% in the past 24 hours.

The upside stance emerges as the altcoin space records significant rebounds after the latest flash crash.

APT hovered inside an ascending triangle pattern days ago, signaling uptrend continuation.

Nevertheless, the alt has plunged beneath the technical setup’s neckline at this publication, confirming a nullified upside breakout.

Also, the cumulative volume delta, which measures the variance between selling and buying volumes, dipped into the negative territory.

Such movements suggest seller dominance and looming price dips.

The Moving Average Convergence Divergence supports the bearish case, with the MACD line making a bearish crossover with the signal line.

Such sentiments suggest possible APT declines to the $9.65 footing (in the near term). That would lead to a 22% slump from current prices.

Meanwhile, broad market sentiment would be crucial in defining APT’s trajectory in the coming sessions.

Popular analysts, including Crypto Rover, remain bullish about the market, forecasting an impending altcoin season.

Crypto Rover 🧙‍♂️

@R0VERCCRC

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So far, we’ve only seen the tip of the iceberg of what this #Altcoin season is capable of. Daily 20-30% pumps are about to become the norm again. It’s truly going to be incredible.