Aptos price: APT shows weakness ahead of $23.8 million cliff unlock

Aptos price has slipped more than 5% in the past 24 hours as many cryptocurrencies show weakness in line with the broader stock market. Today’s breakdown saw the $APT/USD pair continue below the key support zone at $5.00 for the first time since September 11 when it dipped to lows of $4.90 across major cryptocurrency exchanges. Aptos price touched lows of $4.88 on Coinbase.

One major upcoming Aptos news event this week is the huge $APT token unlock expected on October 12. It’s a scenario that could see volatility play a part in $APT price. A similar outlook could be observed for other tokens facing significant unlocks in the week of October 9-16, including $CYBER, $FLOW, SWEAT, GLMR and $1INCH.

Aptos price – what next for $APT amid huge token unlock?

Even as crypto analysts maintain a bullish perspective for Bitcoin and crypto, the current outlook for $APT suggests further weakness given the potential impact of geopolitical events on markets in general. In this case, a dip for the top coin Bitcoin could signal fresh downward moves for altcoins.

For $APT, one possible catalyst for downward volatility could be the upcoming token unlock scheduled for October 12.

As with the mentioned dip to lows of $4.90 in September, the Aptos community could see $APT price suffer negative action when millions of $APT are unlocked into the market.

According to Token Unlocks, a total of $37.92 million in token supply will be unlocked this week, with seven tokens scheduled for what the tokenomics insights platform says are “cliff unlocks.” Aptos will account for more than $23 million of this week’s unlock.

Specifically, Aptos will release 4.54 million $APT into the market, with the unlock accounting for roughly 1.9% of the cryptocurrency’s circulating supply. Such a large release of tokens is likely to result in a buildup of selling pressure for $APT.

It’s worth noting that 3.21 million of the unlocked tokens will go to the community, while 1.33 million is for the foundation. Given ecosystem dynamics, the most likely sell-off pressure could come from the community holders who may seize upon the allocation to target profit taking deals.

Aptos price on the weekly chart. Source: TradingView

A breakdown below intraday lows of $4.95 could allow bears to target the year-to-date low of $3.40. The outlook is strengthened by the price remaining within a macro downtrend since the peak above $20.30 in January, 2023.

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