Aptos (APT) continued its strong rally on Tuesday after retesting a key support zone last week. On-chain data further reinforces APT’s bullish outlook, with open interest (OI) rising and the long-to-short ratio exceeding one, all of which hint at a potential breakout in the coming days.
Aptos Bulls Ready for a Strong Uptrend
Aptos broke out of a falling wedge pattern (formed by connecting multiple peaks and troughs with two trendlines) on September 21; a breakout from this pattern typically favors bulls.
APT retested the breakout level on October 1, coinciding with the 200-day Exponential Moving Average (EMA) at $7.74 and the support zone between $7.35 and $7.76. This is a key support level, having recorded a 20% increase. As of Tuesday, APT price continues to trade above around $9.
If the $7.35 and $7.76 support zones hold, APT could potentially rally 14% from current levels to retest the daily resistance at $10.26.
In the event that bulls become active and the overall crypto market maintains a positive outlook, if APT closes above $10.26, it could continue an additional 19% rally to retest the April 12 high of $12.21.
Aptos’ on-chain data further highlights the bullish hypothesis. According to Coinglass, the open interest (OI) of Aptos futures contracts on exchanges is also trending upward. OI reflects the total number of outstanding derivative contracts and indicates whether money is flowing into the contract.
An increase in OI indicates that new or additional money is entering the market, indicating new interest and buying activity. Conversely, when OI decreases, it is often a sign that the market is in a state of liquidation, with many investors pulling out, leading to a potential price drop.
The chart below shows that APT’s OI has increased from $119.23 million on October 2 to $191.84 million on Saturday, its highest level since mid-April. This increase indicates that new money is flowing into the market and new buying activity is taking place.
Coinglass’s long-short ratio is currently at 1.04, its highest in a month, further reinforcing the bullish outlook for Aptos. This ratio is above one, reflecting the positive sentiment in the market, as many traders are betting on the asset price to rise.
However, if the APT daily candle closes below $7.23, the bullish hypothesis will be invalidated. This situation will result in a 12% drop in Aptos price and a retest of the next daily support level at $6.32.