• 14 July, 2024
Market News

Aptos (APT) Faces Potential Volatility as $181.35 Million Token Unlock Nears

Aptos (APT) has emerged as one of the standout performers in the ongoing cryptocurrency market rally. Although the price exhibited a steady upward trajectory during this period, it has moderated recently, prompting traders to closely monitor the forthcoming cliff unlock event scheduled for November 12.

The Aptos (APT) community anticipates the impending cliff unlock event prominently displayed on the network’s calendar. A substantial quantity of 24.48 million APT tokens, valued at approximately $181.35 million, is set to enter the market on the specified date. These tokens will be distributed among key stakeholders, including the foundation, core contributors, investors, and the broader community.

The significance of this unlock event lies in its scale, representing nearly 10% of the entire supply of Aptos tokens. This substantial release is expected to introduce a degree of volatility into the Aptos market as various recipients, including investors, core contributors, and the community, may seek to capitalize on immediate profit opportunities.

Historically, cryptocurrency token unlock events have been viewed as potentially bearish events for asset prices. This is primarily because introducing unlocked tokens can intensify selling pressure across cryptocurrency exchange platforms, with recipients aiming to profit from their holdings. Consequently, Aptos (APT) price may experience fluctuations in the wake of this event despite having surged by nearly 50% since the bullish market phase on October 18, as per CoinMarketCap.

The Aptos price has been on an upward trend, fueled by the overall market optimism and positive sentiment towards the project. Over the past seven days, the APT token has gained approximately 12%, and its trading volume has also increased significantly. However, today’s market conditions indicate a slight correction with a 1.66% decrease in price. At the time of writing, APT is trading at $7.34, with sideways momentum.

The selling pressure resulting from the token unlock event may lead to further price corrections in the short term. If bearish pressure is realized, the price may retract to support levels at $7.00 and $6.50, respectively. However, if bullish momentum prevails, APT might break through resistance levels at $8.00 and $8.50 and continue its upward trajectory. Despite the potential volatility, Aptos’s long-term outlook remains positive as trading volume and market interest continue to grow.

In conclusion, the Aptos (APT) community is on alert as a substantial token unlock event approaches. With a considerable influx of APT tokens set to hit the market, heightened volatility is anticipated. This development underscores the importance of vigilance and prudence among traders and investors as they navigate the potential price swings in the coming days.

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