Today‘s crypto trading spotlight covers the cryptocurrency Aptos, which saw some really good gains in alignment with the overall market.
The reason I cover $APT specifically is that it was not so long ago that this started trading. At the beginning hyped coins often see a lot of volume, volatility and also bag holders, if the price collapses.
This thesis depends partly on the bag holders. The coin comes close to the $7 level, which was support after the crypto $APT started trading. You can see the level marked by the red line below in the daily chart.
This is the level I will be using to trade against, if it rejects the level or spikes above and comes back down. You can see the volume on the left is a lot higher, when $APT was still above the red line and the beginning of its trading.
Often bag holders try to get their money back from when they were in the losses. This is the reason I believe there will be resistance in this price area.
So the plan involves a bit more waiting for the Aptos price to reach $7 (or a bit above or below) before opening a trade. The second „sign“ I would love is a big crack, as this often shows that the backside is in.
You can read about what kind of cracks I mean in a recent article: https://niklasschomaker.com/2023/01/11/crypto-trading-review-bitdao-bit/
I would then open a Short trade looking for entries around $7, with risk set above the recent high near the resistance level. My goal will be determined by the following hourly chart. The blue line marks recent support that I would aim for as a price goal around $5.
Of course this can not play out and the cryptocurrency Aptos could spike higher and make a big run. In that case (if it spikes past $7 and holds above $7) consider switching to the Long side. If there is no resistance above the coins make the biggest run. No one knows where the top could be and the FOMO gets people buying and pushing the price higher.
Have a great day!
This is not financial advice!
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