Aptos achieves historic TVL peak but can APT avoid a pullback?

• Aptos sees positive TVL growth indicating growing investor confidence
• APT could lend itself to the bears in the short term according to multiple signs

The Aptos blockchain has benefitted from the latest bullish performance in more ways than one. The network’s total value locked (TVL) recently soared to its highest point in history.

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Aptos’ TVL peaked at $74.77 million during Thursday’s (26 October) trading session, marking the highest TVL value in its history. This was courtesy of the robust phase of TVL growth observed since the second week of October. This was around the same time that a surge in demand for Aptos’ native cryptocurrency APT was seen.

Source: DeFiLlama

TVL growth signals that there is more confidence among investors. This is because it underscores a shift in favor of a long-term outlook. In this case, the latest surge in Aptos TVL aligns with the idea that the latest rally reflects the pivot from a short-term to a long-term focus.

APT is on track to conclude an overall bullish October

Aptos’s impressive run points to the possibility that we may see more liquidity coming into its ecosystem in the long term. APT’s price action has been heavily bullish in the second half of October.

Furthermore, APT rallied by as much as 43% within the last two weeks. It exchanged hands at $6.44 at the time of writing, which still represented a $35.7 upside since mid-October.

Source: TradingView

The latest rally could be taken as the biggest upside that APT has achieved in the last 11 months. This aligns with the expectation that the market has finally shifted in favor of long-term bulls. However, short-term pullbacks are expected along the way.

APT might already be experiencing the start of its latest pullback. But how far will the retracement go?

Well, APT’s liquidation heat map revealed that the next heavy liquidation zone could occur within the $5.7-$5.8 price level. In other words, APT bears might gain some momentum if the price pulls back as far as the aforementioned price range.

Source: Hyblock

Furthermore, as far as the chances of a pullback are concerned, bullish volumes have been declining after the spike observed over the last few days. This also reflected the sentiment dip observed on the Weighted Sentiment metric. A strong indication that the market could witness a cooldown from the latest bullish momentum.

Source: Santiment

Read about Aptos price prediction for 2024

In addition to the aforementioned information, a declining upside also meant that the bears might secure an opportunity to reclaim dominance. We could see more downside in the next few days since APT was still overbought. However, it was also worth noting that the recent long-term bullish hype could slow down and limit the potential downside.