Here’s why Aptos Price witnessed a major drop despite coiling market sentiments

Key Takeaways:

• Aptos price maintained a remarkable recovery and surged high but the decline that followed dragged the price close to its initial levels
• The APT price closed the previous day’s trade at $4.06 with a market capitalization of $519.92 million and a circulating supply of 130 million APT

Aptos, developed by Meta’s DIEM blockchain engineers, is a layer-1 Proof-of-Stake network that uses a novel smart contract language called Move. The network intends to empower the Web3 space by building dApps to solve real-world problems. Although the network’s throughput was stated to be above 150K, the actual numbers varied greatly. The native token of the network, APT has been having declined despite the market sentiments continuing to coil up. 

Recent Updates:

• Aptos & Google Cloud partnered together to build a strong Web3 community.

ICYMI: Aptos and @googlecloud are partnering again – teaming up to support a stronger, safer, faster network and expanding investment in the global Web3 community.

Read more on the Aptos blog ⤵️https://t.co/DHhATb4dAs

— Aptos (@Aptos_Network) November 17, 2022

• After the recent FTX fallout, Aptos Labs or Aptos Foundation announced that no  Treasury is held by FTX 

A message to the Aptos community: no Aptos Labs or Aptos Foundation treasury is held by FTX.

The network will continue to operate as expected, without impact from these events.

We have a lot to be excited about and look forward to building for the future. Let’s Move.

— Aptos (@Aptos_Network) November 9, 2022

Technical Analysis of Aptos(APT)

Source: Tradingview

• The Aptos price is largely trading within a bearish trend ever since its inception, including a couple of failed attempts to rebound
• After the recent fall, the price is consolidating in a horizontal way, squeeing both the bands of Bollinger Band
• Extended pressure on the bands results in a larger price action regardless of the direction, woefully, bearish in the present scenario
• The RSI is displaying a bearish divergence, while MACD signals ease in the buying pressure, indicating a fresh price plunge to ignite very soon
• The upcoming drop may drag the price towards its lowest level below $3.5 and depending on the volume induced, the recovery may be speculated then 

Read more: Aptos Price Prediction

Aptos (APT) On-Chain Analysis

Development Activity

Source: Santiment

The development activity of the network signifies the activity of the developers to improvise the network’s features and appearance. A rise in development activity indicates the increased network activity that may further impact the network’s growth in terms of upgrades. Meanwhile, the value of the token may also be impacted as the traders may gain confidence in the network.

However, the current scenario is a little diverse. After reaching the peak during mid-August, the development activity has slashed very hard and currently bottoming, nullifying the recent gains. A huge drop denotes a huge drop in the development process that may have a bearish impact on the network growth as well as the value of its native token APT price. 

Total Weighted Sentiment

Source: Santiment

The weighted sentiment is an indicator that shows the investor’s mood and what they are expecting about the price prediction. It combines the positive & the negative mentions over time and multiplies with the amount of the social volume. A drop in the sentiment signifies that the market participants are pretty unsure about the upcoming trend.

The weighted sentiments for Aptos have also dropped heavily from the high of 7.62 to the lower level of around 0.9. Meanwhile, the token’s sentiment is attempting to rise displaying that traders are slightly bullish on the upcoming trend.

In Conclusion

The current market conditions do indicate that the upcoming trend of crypto is extremely uncertain. Meanwhile, the APT price has been trying to remain within the elevated range, the mounted bearish pressure has restricted the rally. Moreover, the drop in the development activity and the weighted sentiments has also deeply impacted the Aptos price rally in the short term. 

However, with a slight release of the bearish pressure, the markets tend to rebound. Hence APT price may also rebound finely before testing the yearly lows at $3.48. 

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