- Aptos sees positive TVL growth, indicating growing investor confidence
- According to several signs, APT could lend itself to the bears in the short term
The Aptos blockchain has benefited from the latest bullish performance in more ways than one. The network’s total value (TVL) recently rose to its highest point in history.
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Aptos’ TVL peaked at $74.77 million during Thursday’s (October 26) trading session, marking the highest TVL value in its history. This was due to the robust phase of TVL growth observed since the second week of October. This was around the same time that a surge in demand for Aptos’ native cryptocurrency APT was observed.
Source: DeFiLlama
The TVL growth indicates that there is more confidence among investors. This is because it underlines a shift in favor of a long-term perspective. In this case, Aptos TVL’s latest surge is consistent with the idea that the latest rally reflects the shift from a short-term focus to a long-term focus.
APT is on track to end an overall bullish October
Aptos’ impressive run points to the possibility that we will see more liquidity coming into its ecosystem in the long term. APT’s price action was heavily bullish in the second half of October.
Additionally, APT is up a whopping 43% in the past two weeks. At the time of writing, it was exchanging hands at $6.44, which still represented an increase of $35.7 since mid-October.
Source: TradingView
The latest rally could be considered the biggest gain APT has achieved in the past eleven months. This is consistent with expectations that the market has finally shifted in favor of long-term bulls. However, withdrawals are expected in the short term.
APT may already be experiencing the beginnings of its latest relapse. But how far does the retracement go?
Well, APT’s liquidation heat map revealed that the next heavy liquidation zone could occur within the $5.7-$5.8 price level. In other words, APT bears could gain some momentum if the price pulls back to the aforementioned price range.
Source: Hyblock
Moreover, in terms of the chances of a pullback, bullish volumes have fallen from the peak seen in recent days. This also reflected the sentiment dip observed on the Weighted Sentiment metric. A strong indication that the market could be witnessing a cooldown after the last bullish momentum.
Source: Santiment
Read more about Aptos price predictions for 2024
In addition to the above information, a diminishing advantage also meant that the bears could secure a chance to regain dominance. We could see more downside in the coming days as APT was still overbought. However, it was also worth noting that the recent bullish hype could slow down in the long term and limit the potential downside.