Here’s Why Aptos (APT) Rose by 150%, Detailed Analysis

Numerous indicators suggest that the rise of Aptos on the market was not expected by the majority of analysts. Nevertheless, APT placed itself as one of the strongest performers on the market, with more than a 150% price increase since the beginning of the recovery. Here are the factors that contributed to it.

In the last 48 hours, Aptos was one of the most actively liquidated assets on the market, which is a noteworthy sign considering its trading volume in comparison to giants like Bitcoin and Ethereum.

4.$APT Supply Schedule

No $APT available in the first 12 months for Core Contributors and Investors.

Core contributors and investors will unlock $APT for the first time in November 2023. pic.twitter.com/3Rcqt6oibJ

— Lookonchain (@lookonchain) January 27, 2023

Almost $15 million worth of shorts have been absorbed by bulls, which caused a short squeeze and sent the price to the new ATH without any pauses. But even after a significant price increase, bears did not give up and opened even more shorts, still outnumbering bulls on the market.

If the same situation occurs on the market, we will see yet another short squeeze that will most likely have a greater effect on the cryptocurrency, considering the absence of a solid resistance level for the price above the current ATH.

The large spike in selling pressure could also be justified by the long lockage period of contributions to investors and core developers until November 2023, which allows early retail investors to capitalize on gains up until the aforementioned period.

However, smaller traders should remain cautious as Aptos is mostly owned by whales and institutional investors. According to the distribution of funds, the top 20 holders currently own 97% of the circulating supply, which might become a problem in the future, when the majority of asset owners decide to take profits, especially after the unlocking period in November 2023.