Why Did the Aptos (APT) Price Drop by 30% in February?

Key Takeaways:

• Aptos price after a fine upswing in January, tumbled down heavily by more than 30% in the following month 
• The bulls are attempting very hard to revamp the bullish trend as the price has marked an interim bottom
• The APT price seems to have lost its popularity as the dominance drops but is making a good effort to rebound from the bearish cartel.

Aptos price has undergone a spectacular rally since the beginning of the year 2023 and gained nearly 600%. Woefully, the trend shifted in favor of bears in the last few days of February which compelled the price to plunge hard by more than 35% at the moment. What pushed the prices of APT lower? Let’s decode the reason behind this massive fall of 30% in the past month. 

Aptos had been gaining a lot of popularity as it marked a historical rise of more than 400% in just a couple of weeks. Moreover, one of the popular DEX, Pancakswap announced the implementation of their multichain deployment on the Aptos network which fueled the rally towards the north. Additionally, the platform further announced its partnership with Chingari to offer an upgraded version of the App on the chain offering a fast and seamless social experience. 

Read More: Pancakeswap Price Prediction

Amid the positive sentiments, the price fell into the bearish trap and slashed prices hard. Besides, rumors of the tensions between the Aptos and Sui blockchains hovered around the space which are the two blockchains staffed by the teams who emerged from Facebook’s Diem stablecoin project. Along with this, the bearish market sentiments are also preventing APT prices from gaining value. 

Aptos Token Technical Overview

Source: Tradingview

• The APT price after marking its interim highs has been trading within a bearish descending triangle and currently hovering along the lower support
• The token appears to have lost its momentum as the trading volume has depleted heavily and the RSI has displayed a bearish divergence
• Therefore, the price could maintain its trend along the lower support of the triangle and reach the edge of the consolidation 
• If the current momentum continues, then a significant price plunge may be recorded driving the price toward the lower support at $11.13 or slightly below

Aptos Token On-Chain Analysis

Aptos Social Dominance

Source: Santiment

The social dominance of the token depends on the posts/mentions, etc, and many more being done about the token. The dominance of a token is nothing but knowing how dominant is that crypto among the top 100 crypto assets as per the market cap. If the levels have raised, it indicates that the dominance has increased compared to that of the top 100 tokens. 

Presently, social dominance has dropped heavily after making huge highs in Q4 2022. Meanwhile, the levels have rebounded in recent times, indicating the token is again gaining dominance within social media platforms. It may impact the token’s value but only for a short time frame. 

Aptos Development Activity

Source: Santiment

The robust nature of the project completely depends on the strong fundamentals which are derived from the development activity. The development activity here suggests the seriousness of the development team to achieve a high business proposition for the project. It also suggests that the developers are tirelessly working to offer new and updated features very soon. 

The development activities are recorded on the GitHub repository which is usually public. The rise in the activity is determined by the number of events posted by the developers like pushing commits, raising queries, and sharing information, etc, and many more. Presently, the levels have plunged hard. However, a fine recovery has been ignited that may rebound to the upper target soon, indicating an increase in the developer’s activity. 

Additional Read: Aptos Vs Solana

Concluding Thought!

Aptos had attracted many strong hands in recent times due to its magnificent rally. However, the demand has ceased as the popularity appears to have decreased. Therefore, the APT price is believed to remain consolidated but prevented from slicing through the lower support zone. However, social dominance and developer activity have risen slightly which may have a moderate impact on the price in the coming days.