Aptos (APT) is challenging the $1 psychological resistance amidst a crypto market showing cautious optimism. After rallying to $1.11 and then retracing, technical analysis suggests a potential bullish breakout could be brewing based on a rising triangle pattern and buying pressure indicators. Traders are advised to watch for the $1 level to be flipped to support, while remaining cautious due to broader market conditions.
The cryptocurrency market has seen short-term success recently with Bitcoin experiencing Spot ETF inflows and rising demand. In this environment of prevalent fear morphing into cautious optimism, Aptos has been challenging the $1 psychological round-number resistance.
On Wednesday, 25 February, the altcoin rallied to a local high of $1.11. It soon retraced by 22% over the next three days, however. The long-term trend on the 1-day chart remains bearish, but it is on the verge of potentially reversing.
A breakout above the swing point at $1.008 would signal a shift in the long-term Aptos token price trends. The A/D indicator has advanced strongly over the past two weeks, and the MFI was above 50 on the daily chart. Together, they hint at steady buying pressure and upward momentum.
On the 4-hour chart, a triangle pattern emerged just below the $1 psychological resistance level. The A/D and MFI indicators were slightly bullish on this timeframe too. It was the rising triangle pattern that was most intriguing, however.
As buyers challenged the $1-level, they forced the price to form higher lows over the past week. This is a sign of conviction in a bullish breakout. The fact that the rejection from this resistance was overcome, and it was under siege so quickly, hints at bullish strength.
The 1-month liquidation heatmap revealed a cluster of short liquidations from $1 to $1.12. Combined with the triangle pattern seen earlier, it might be highly likely that a bullish breakout would commence soon.
Traders can wait for the $1-level to be flipped to support before examining if it is a buying opportunity. With Bitcoin also fighting to keep control of the psychological $70k, traders should remain cautious. The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
