Aptos (APT) Price at risk of nose diving
The Aptos (APT) price has been correcting since October 23rd. It seems to be in the last part of the correction, which could cause a breakdown from the current support area.
A technical analysis of the APT price action shows a decline in a descending parallel channel since reaching a high of $10.33 on October 23.
The downward movement has led to a low of $7.12 on November 2nd. The low and subsequent bounce (green icon) served to confirm the $7.15 horizontal area as support.
Descending parallel channels usually contain corrective structures, which means that an eventual breakout from it will be likely. If one occurs, the next closest resistance would be $8.34.
However, despite the bounce, the APT price has yet to move above the middle of the channel. Doing so will be a sign that an eventual outbreak is expected.
Furthermore, the daily RSI remains bearish. It has not generated any bearish divergence and it remains below 50.
Therefore, despite trading in a long-term corrective pattern, there are no signs to suggest a bullish Aptos price prediction and an impending reversal is likely. A daily close below the $7.15 horizontal area could accelerate the decline and lead to new lows.
APT Price Prediction: Wave numbers support $6.50 low
The decline since the October 23 high resembles a complex corrective pattern (black). The significant overlap and the fact that the movement is contained within the channel supports this possibility.
If correct, this would mean that the Aptos price is in Z-Wave of a WXYXZ correction. Since wave Y was the longest, it would make sense that waves W and Z would have a 1:1 ratio. This minimum price is expected to reach $6.50.
In addition, this area coincides with the support line of the channel mentioned above. Because of this confluence, it is fitting that a low is reached at this level.
Conversely, a breakout above the channel’s resistance line will invalidate this bearish APT short-term price prediction.
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