APT hits six-month high as God candle forms, rally expected to continue

Aptos (APT) became the top gainer on October 22 following a significant increase in its total value locked (TVL) within the protocol.

APT rose by 9% in the last 24 hours, reaching a daily high of $11.13. Its market capitalization exceeded $5.7 billion, with a daily trading volume of over $597 million.

This price surge came after Aptos broke out of a narrow trading range between $9.7 and $10.1, where it had been trading for the previous five days. On October 22, a strong bullish candlestick, or “god candle,” appeared on the APT chart, pushing the price from $10.10 to $11.12.

Several recent partnerships and developments contributed to this rally.

The first key factor was Aptos’ integration with Echo Protocol, a decentralized finance platform, on October 21. This integration helped increase the TVL in Aptos to $150 million, enabling Echo Protocol users to earn up to 10% returns in APT, which enhanced the altcoin’s utility.

According to DeFi Llama data, Aptos’ TVL reached a new all-time high of $2.15 billion, making it the 7th largest blockchain in the DeFi space, surpassing Sui with a TVL of $1.64 billion.

Additionally, Aptos gained attention after announcing a strategic partnership with MEXC, a crypto exchange. This collaboration will involve joint initiatives to promote APT through various events.

These developments sparked renewed interest among traders, leading to a rise in open interest in the futures market. As reported by CoinGlass, the open interest surged from $213.9 million to $274 million in just 24 hours, marking a six-month high. This sharp increase suggests that traders are expecting the rally to continue in the short term.

Sentiment metrics from CoinMarketCap also reflected a bullish outlook, with most traders expressing optimism about APT’s future price movement.

Technical indicators signal more upside

On X, the pseudonymous analyst AMCrypto pointed out that Aptos is forming a bullish flag pattern, bolstered by a rise in total value locked (TVL), a surge in daily active users, and smart money quietly accumulating the token. These factors, according to AMCrypto, indicate strong fundamentals and technical momentum, positioning Aptos for a potential breakout to new all-time highs in Q4.

In the analyst’s chart, a breakout above the $10.50 resistance level would confirm the bull flag pattern. At the time of writing, APT had already surpassed this level, trading at $10.96. Given this, APT could be heading towards a short-term price target of approximately $12.50, as projected by AMCrypto.

On the 1D APT/USDT chart the 50-day moving average had crossed the 200-day Moving Average leading to the formation of a golden cross, a sign of a major trend reversal to the upside in technical analysis.

Additionally, the Relative Strength Index (RSI) has remained above the neutral level since September 18, indicating sustained investor interest and reinforcing the overall bullish sentiment.

With the bulls maintaining control and the recent golden cross suggesting a long-term uptrend, APT could continue to push toward higher resistance levels. The next potential target lies around $11.08, which is marked by the upper Bollinger Band.