God candle formation boosts APT to sixmonth peak with expectations of sustained rally
APT claimed the top position as the biggest gainer on October 22, thanks to a surge in the total value locked in the protocol. The price of Aptos (APT) rose by 9% in the past 24 hours, reaching a daily high of $11.13 at the time of writing. The market capitalization of APT surpassed $5.7 billion, and its daily trading volume exceeded $597 million.
This price rally occurred after the altcoin broke out of a tight trading range between $9.7 and $10.1, which it had been stuck in for the past five days. During the early trading hours on October 22, a strong upward movement occurred on the APT chart, pushing the price from $10.10 to $11.12.
Several recent partnerships and developments contributed to this rally. Firstly, Aptos integrated with Echo Protocol, a decentralized finance platform, on October 21. This integration increased the total value locked in Aptos to $150 million. It also allowed Echo protocol users to earn returns of up to 10% in APT, expanding the use cases for the altcoin.
According to data from DeFi Llama, Aptos’ total value locked currently stands at its all-time high of $2.15 billion. This makes it the seventh-largest blockchain in the DeFi industry, surpassing its competitor Sui (SUI), which has a total value locked of $1.64 billion.
Furthermore, Aptos gained attention after announcing a strategic partnership with crypto exchange MEXC. This collaboration will involve joint initiatives aimed at promoting APT through a series of events.
These developments have ignited renewed interest among traders. Open interest in the futures market surged from $213.9 million to $274 million within the last 24 hours, reaching a six-month high. This sharp increase suggests that traders anticipate the rally to continue in the short term.
The community sentiment metric on CoinMarketCap also reflects a similar outlook, with the majority of traders expressing bullish sentiment.
In terms of technical analysis, Aptos is forming a bullish flag pattern, as noted by pseudonymous analyst AMCrypto. This pattern is supported by increasing total value locked, a surge in daily active users, and smart money quietly accumulating the token. According to the analyst, these factors indicate strong fundamentals and technical momentum, positioning Aptos for a potential breakout to new all-time highs in the fourth quarter.
Based on the chart shared by the analyst, a breakout above the $10.50 resistance level would confirm the bull flag. At the time of writing, APT had already surpassed this level and was priced at $10.96. Therefore, APT could be heading towards a short-term price target of around $12.50, as projected by AMCrypto.
On the 1D APT/USDT chart, the 50-day moving average crossed the 200-day moving average, forming a golden cross. This is a sign of a major trend reversal to the upside in technical analysis.
Additionally, the Relative Strength Index has been above the neutral position since September 18, indicating sustained interest from investors and supporting the overall bullish narrative.
As the bulls continue to dominate the market, and with the recent golden cross signaling a longer-term uptrend, APT could continue to push towards higher resistance levels. The next target could potentially be around $11.08, marked by the upper Bollinger Band.
Read more: Aptos experiences a 20% surge in 24 hours, reaching a six-month high in open interest.
