Recently, there seems to be a decline in investor confidence in the altcoin market, with the Aptos price performance mirroring this sentiment. Since the beginning of the new year, the APT token has struggled to maintain any significant upward movement.
Despite briefly reaching above $10 in early January, the Aptos price has been steadily decreasing, now hovering around $8. Unfortunately, it appears that the challenges for the APT token are far from over, with the potential for a further correction looming.
Understanding APT’s Possible 50% Correction
In a recent post on the X platform, renowned crypto analyst Ali Martinez made a concerning prediction regarding the future price of Aptos in the coming weeks. According to Martinez, the altcoin currently exhibits a bearish setup, making it susceptible to a significant correction.
The basis for this pessimistic forecast is the formation of a head-and-shoulders pattern on the Aptos 12-hour chart. This pattern, commonly used in technical price analysis, consists of three price peaks, with a higher “head” positioned between two lower “shoulders.”
Typically, this chart formation indicates a potential downward trend reversal, suggesting a shift from an upward price trajectory to a downward one. Confirmation of this setup occurs when the asset’s price breaks below the neckline, a trendline connecting the swing lows between the head.
As illustrated in the above chart, the Aptos price has already formed the right shoulder after being rejected around $10.5. Following a test of the neckline, located around $8 in mid-January, the price rebounded to $9.5.
However, the Aptos price appears to be approaching the neckline once again. While there is no certainty that the neckline will break this time, it is noteworthy that repeated testing of a price level increases the likelihood of a breach.
According to Martinez, if the Aptos price successfully drops below $8, there is a risk of a substantial decline to $4.30, representing a nearly 50% decrease from the current level.
Alternatively, Martinez outlined a scenario where a sustained close above the right shoulder at $10.50 could invalidate the bearish outlook for Aptos.
Aptos Price Overview
Currently, the APT token is trading at around $8.13, reflecting a nearly 2% decline in the past 24 hours. Data from CoinGecko shows that the Aptos price has decreased by over 11% in the last week.
