APT, the token that powers new up-and-coming layer-1 blockchain Aptos, is consolidating just to the north of the $13 level on Monday. Profit-taking in wake of a stunning 281% rally since the start of the month, with over 70% of these gains coming in the last seven days, preventing the cryptocurrency from holding at record-high levels just to the north of the $14 mark.
APT’s rally has been in part powered by a broader move higher in crypto since the start of the month which has, for the most part, been fuelled by macro-optimism (for easier monetary policy this year and next). Some analysts have also cited growth in trading volumes on Aptos-based NFT marketplace Topaz as boosting interest in the recently launched layer-1 blockchain.
Crypto Users Skeptical of the Rally
Crypto twitter community members were skeptical as to the sustainability of the rally. According to @Z_Humphries, Aptos is a “new shiny L1 and a lot of the VC money that left Solana could be going here… just a guess”. VC stands for Venture Capital – these are essentially hedge funds that invest in speculative projects in order to make quick money.
Other Twitter users also referred to the cryptocurrency as a VC “pump”.
Another user criticized Aptos’ allocation to insiders.
Early investors and the Aptos Foundation have been allocated roughly half of the 1 billion tokens that can eventually be issued. At the moment, only 16% of tokens have been issued, with many of the insider owned tokens vested for extended time periods.
According to popular crypto YouTube channel Coin Bureau, the latest rally has been pumped by a short-squeeze and Aptos’ popularity in Asia. However, Coin Bureau cautioned that market manipulation could be at play. According to Coin Bureua, there is speculation that whales might be manipulating markets to cash out, given many of the coins to have pumped the most recently are heavily VC funded, like Aptos.
Is It Too Late to Buy Aptos?
If the sceptics are correct that Aptos is being manipulated so whales can cash out, then it probably isn’t too late to buy Aptos. Pump and dumps refer to when prices rise rapidly, before falling back again as whales offload their bag and APT might well be going with through this process.
Now that all major profit targets have been hit in wake of APT rallying back to record highs, a retracement lower might be on the cards. Potential APT investors might want levels like the $7.0 support area and the $5.0 support area attract to add to long positions, should APT retrace.
Buy APT Now
If you’re looking for other high-potential crypto projects alongside APT, we’ve reviewed the top 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.