Aptos price sets the trap for bulls with $53 million APT token unlock

fxstreet.com 11 April 2023 05:33, UTC

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Aptos holders gear up for 4.5 million $APT token unlock scheduled on Wednesday.
$APT holders are likely front-running the event and it could turn out to be a sell-the-news for the asset following 7% gains overnight.
The token unlock will introduce $APT tokens upward of $53 million to the circulating supply of the asset.

Aptos, a web3 blockchain yielded 7% gains for holders overnight. $APT holders are likely preparing for the unlock of $53 million worth of the token on Wednesday. The $APT token unlock could increase selling pressure and the ongoing price rally implies holders are front-running the event.

Also read: Ethereum holders brace for selling pressure on Ethereum after run up to $1,900

Aptos token unlock slated to occur on Wednesday

Aptos holders brace for impact ahead of 4,543,478 $APT token unlock worth upwards of $53 million. The unlock is scheduled for Wednesday, April 12. A token unlock is typically a bearish event for the asset.

$APT price yielded nearly 7% overnight gains for holders, ahead of the scheduled token unlock. This makes it likely that $APT has “set a trap” for bulls and the unlock of nearly 0.45% of the total supply of the web3 token might increase the selling pressure and result in a correction.

$APT holders can therefore expect a correction in Aptos price post the token unlock and the current rally is likely traders front-running the event.

$APT scheduled token unlock

The unlocked $APT tokens will be distributed to the community and the foundation. The community will receive 3,210,145 $APT tokens, nearly 0.32% of the total supply and the foundation will receive 1,333,333 $APT, 0.13%.

Where is $APT price headed

$APT price is in a multi-month downtrend and in descending parallel channel as noted in the $APT/$USDT four-hour price chart below. The descending channel pattern is considered bullish only when price penetrates the upper trendline.

$APT price is therefore at a critical point, testing the upper trendline of the channel at $11.73 as resistance.

$APT/$USDT 4h price chart

If $APT continues its climb, the next resistance is at 23.6% Fibonacci Retracement at $12.25. However, with the upcoming token unlock, selling pressure is expected to increase and $APT price could nosedive to support at $10.63. The $10.63 level has acted as support for Aptos, barring mid-March when $APT witnessed a correction below this level.

The Relative Strength Index (RSI), a momentum indicator reveals a bullish divergence on the four-hour price chart, but is likely that the divergence has played out and the token unlock negatively influences $APT price.

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