APT Price Struggles Below Key Support: OI/Price Divergence Suggests Reversal

• APT saw a 500% increase in January, but then experienced a 44% correction.
• The bulls failed to defend the $12 support level and APT traded at $11 at the time of writing.
• There is an OI/price divergence, suggesting a price reversal could be imminent.

APT Price Analysis

APT registered a 500% hike in January, rising from $3.4 to $20.4. However, the extended correction after price rejection at $20.4 has caused APT to clear over 44% of its gains and trade at $11 at the time of writing. The bulls failed to defend the key support level at $12 and APT continued to struggle below a descending line (white line). An OI/price divergence suggests that a price reversal might be imminent if demand for APT increases in the futures market.

Market Structure

APT’s market structure declined further and breached key support levels due to Bitcoin’s sharp drop on Thursday (2 March). This caused APT to break below the 38.2% Fib support level ($12.1310), which previously prevented steep declines from occurring. The upswing could be accelerated if BTC reclaims the $23K level, however more long positions were liquidated in the past 24 hours than short-positions as per Coinalyze so this could limit any potential upswing for APT.

RSI & OBV Indicators

The RSI (Relative Strength Index) was in the lower range as OBV (On Balance Volume) declined significantly, indicating buying pressure reduced considerably and tipping the scale towards bears control of the market. Moreover, CMF (Chaikin Money Flow) moved southwards below zero mark which shows bears are gaining control over buying pressure leading into further decline of prices for APT token.

Open Interest/Price Divergence

As per Coinglass, open interest peaked on 2 March and then decreased afterwards but despite this trend there was still an increase in open interest while prices decreased which creates an OI/price divergence suggesting that there could be an upcoming price reversal if demand for APTs increases once again in futures market .

Conclusion

Bulls should seek entry into market if APTs close above 38%, targeting EMA ribbon level of 12$ or descending line with immediate target being 23%. Bears should place stop loss above 38% Fib level with target being 10$ as BTC retests 21$. A close above 50% Fib would give more leverage to bulls targeting 78%.