- Assessing the possibility of more sell pressure courtesy of the upcoming APT unlocks.
- APT accumulation fails to yield substantial momentum to escape the bottom range.
The list of the largest token unlocks taking place in September is out and APT ranks high. In other words, Aptos’ circulating supply could be in line for a surge and this might have a significant impact on its price.
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APT’s potential upside could be limited by a growing circulating supply. Early investors and protocol developers often use vesting schedules to prevent token dumping.
Instead, the digital currency involved is released in tranches. In this case, APT is scheduled for a token unlock this month where about 4.54 million APT tokens will be unlocked.
According to TokenUnlocks, large-amount unlocks (unlocked amount greater than 10 million US dollars) in September include HBAR SUI IMX APT APE DYDX OP, etc., with an unlock value of over 225 million US dollars.https://t.co/tuQYnSlfTZ pic.twitter.com/qY3HkgzYVj
— Wu Blockchain (@WuBlockchain) August 31, 2023
The holders of the vested or unlocked tokens will finally be able to sell their tokens. This could lead to additional sell pressure on APT depending on whether the holders of the vested coins decide to sell. According to the vesting schedule, the unlocked APT coins represent roughly 1.99% of its total circulating supply.
A surge in the circulating supply of a digital asset without an accompanying demand surge may lead to significant price dilution. Especially if the token unlock involves a large amount of coins. A 1.99% supply ratio may not be enough to warrant a robust downside, although it is worth noting that there are other factors influencing price action.
APT struggles to regain bullish momentum
APT’s $5.50 press time price level meant that the price was once again in an important support zone. Its Money Flow Index (MFI) recently assumed an upward trajectory. This suggested that liquidity was flowing back into APT. Nevertheless, it continues to struggle with low bullish momentum.
Source: TradingView
An assessment of APT’s on-chain metrics revealed low confidence in the bulls, hence low buying pressure. It could be taken as a reflection of the weighted sentiment metric that was hovering near its four-week low since before mid-August.
Source: Santiment
Similarly, APT’s volume remains subdued to its lower monthly range. This was in line with the bearish market conditions that have prevailed in the last four weeks. The current bearish consensus may prevail especially with the token unlocks.
How many are 1,10,100 APTs worth today
APT’s preference for the downside was also due to the lack of a strong enough catalyst to trigger a pivot. On the other hand, some might see this as an opportunity considering that APT has been on an overall decline and is now undervalued. In the meantime, the short-term outlook suggests that a sub $5 APT is quite possible.
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