Aptos (APT) Price Prediction: Bearish Divergence Puts Token at Risk as Volatility Spikes

APT, the governance token of the Layer 1 blockchain network Aptos, has witnessed a significant price decline in the last month.

The price of APT, the native governance token of the Layer 1 blockchain network Aptos, has seen a significant decline in the last month, as the cryptocurrency market has seen a decrease in activity.

At press time, the altcoin trades at $5.82, showing a decrease of over 30%.

APT is showing signs of being at risk of a large price swing, as its volatility markers have started to spike.

Aptos Shows Increasing Volatility

The first sign of the heightening volatility in the Aptos market is its Bollinger Bands. Readings from this key volatility market indicator show a widening gap between the upper and lower bands of the indicator.

Bollinger Bands are used to gauge an asset's market volatility and can be used to identify potential overbought or oversold conditions. When the gap between the upper and lower bands of the indicator widens, it indicates increased market volatility.

Moreover, during a period of price decline, the widening bands suggest that the downtrend may continue. It signals stronger selling pressure or a lack of buying interest at current price levels.

The spike in market volatility is confirmed by APT’s surging Average True Range (ATR).

This indicator measures market volatility by calculating the average range between high and low prices over a specified number of periods.

When its value rises, it suggests increased market volatility and hints at the possibility of a price swing in either direction. At press time, APT’s ATR is 0.48. It has been on an uptrend since July 1.

APT Price Prediction: Bearish Divergence Puts Token at Risk of Falling to $5.62

Interestingly, despite APT’s price decline, the token has seen a surge in its daily trading volume. While the token’s price has fallen by 18% in the last week, its trading volume has increased by 29% during the same period.

The opposite movements of APT’s price and its daily trading volume create a bearish divergence, suggesting that more market participants are actively selling the asset.

If selling activity remains high, the token’s value may plunge to $5.62.

However, while increasing volume during a decline generally supports the continuation of the downtrend, extreme spikes in volume could sometimes precede a price reversal. Therefore, if APT witnesses a correction, its price may climb above $5.90.

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