Aptos – THREE factors that could fuel APT’s short squeeze to $3

Key Takeaways

Why did Aptos fall 27%?

$6.5 million short liquidations and low buying pressure dragged APT below $3 support.

What could trigger recovery for APT?

Sustained activity above 1.7 million Active Addresses and a breakout past $3 may open a path to $4.

Aptos [APT] extended its monthly decline to nearly 27%, even as its on-chain activity surged. Despite broader market weakness and heavy liquidations, network participation remained high.

Aptos network roars, price stumbles

The number of monthly Active Addresses on the Aptos blockchain surged by more than 2x. They rose from an initial reading of 750K to slightly above 1.8 million but were stabilizing around 1.7 million.

In fact, the growth reflected higher network use and increased perpetual trading, which jumped 62% in a week, according to DefiLlama data.

Source: Nansen AI

However, this activity failed to lift the token’s price. Aptos’ Total Value Locked (TVL) hovered near $1 billion, still below previous highs.

Why is APT price action weak?

APT mirrored the wider market’s weakness following the $2.10 billion liquidation cascade that dragged Bitcoin [BTC] down sharply. The token broke below a descending wedge at the start of November, confirming bearish control.

From a technical view, APT dropped from around $3.06 to $2.60, reflecting a 27.6% slide. The CVD stayed mildly positive at $227.43K, hinting at weak buying pressure.

Meanwhile, the MACD suggested seller momentum was fading, though both sides stayed muted.

Source: TradingView

If APT regains the $3 level, a pause in the decline could follow. A clean breakout above $4 might flip sentiment. Until then, the token remains confined in a downward structure on the 4-hour chart.

The volume of sales in the Derivatives market further showed the origin of the decline. More than $6.54 million in leveraged shorts were placed across all APT/USD pairs.

This sell pressure was countered by $3.81 million in cumulative longs, 2x less than shorts.

Source: CoinGlass

The largest cumulative short liquidation leverage was on Binance, which accounted for $1.56 million at $2.79 as per CoinGlass data. That said, how could liquidity influence the next price movement of APT?

Liquidity traps above $2.8

A concentration of liquidity was seen at the upper side of the most recent price action, according to the Liquidation Heatmap. The $2.80 zone contributed to this concentration, with cumulative orders exceeding $1 million.

This suggested price was more likely to go higher than lower if it followed liquidity as the target.

Source: CoinGlass

The regions below $2.60 were less concentrated. This could suggest a short-term pause to further breakdown.

In conclusion, APT price action looks weak, with signs of buyers kicking in appearing. However, the market remains bearish until resistance levels are turned into supports.