Aptos (APT) Could Fall to Below $7 After April Unlock

Aptos will unlock $53 million of APT tokens at 05:30UTC on April 12, increasing the asset’s circulating supply by 0.5% to 186 million APT.

The unlock will be the fourth release of vested tokens in 2023. Previous releases occurred in tranches of 4.5 million APT on Jan. 11, Feb. 12, and Mar 12.

APT Unlock Will Release 1.3 Million APT to the Aptos Foundation

At current prices, the April unlock makes up roughly a third of the token’s $145 million trading volume in the last 24 hours. The release will also increase APT’s circulating supply to about 186 million tokens, taking its market cap to roughly $2,162,271,422.

Supply is capped at 1 million tokens, with April’s release reducing the remaining locked supply to about 842 million ($9.81 billion).

Projects lock a native token into a “vesting” smart contract that releases them in a controlled manner according to a predetermined schedule. The tokens are released to stakeholders, including community members, core contributors, Foundation members, and investors. 

The unlock will send 3.2 million APT to the community and 1.3 million APT to the Aptos Foundation. Tokens sent to the Foundation are used for grants, incentives, and contributing to community growth initiatives.

Ultimately, about half of all APT will go to the community. One-fifth to core contributors, 16.5% to the Aptos Foundation, and 13.5% to investors.

Token releases often result in short-term volatility and price decreases. APT’s February unlock saw the token’s price fall 8% intraday to $13.02. The token’s current price is $11.62, down 42% from an all-time high of $19.92.

Technical analysis by BeInCrypto predicted that the price of APT would either break out to $13.80 or fall back to a $10 support area.

APT Price Could Fall Sharply Below $10 Support, New Analysis Suggests

The Aptos (APT) price has fallen under a descending resistance line since Jan. 26. Due to the presence of numerous wicks, the exact slope of the line is undetermined. It is possible that the price has broken out from a steep resistance line (dashed) or that the price is still following one (solid). 

The fact that the RSI is at 50, a sign of a neutral trend, does not help determine the correct line. 

More importantly, the APT price also trades just above the $10 horizontal support area. A breakdown below it could trigger a sharp fall to $7.50. It is possible that the aforementioned token unlock could catalyze such a decrease.

On the other hand, if the price breaks out from the resistance line, a sharp move to $13.50 could follow.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.