Blackrock's Expansion into Aptos Blockchain Fails to Sustain APT Price Rally Amid Declining Open Interest and Trading Volume

On November 14, 2024, Blackrock announced some exciting news. They’re expanding their tokenized money fund to include more blockchains, like Aptos (APT), which uses the Move programming language. This announcement sparked a lot of buzz about whether the price of Aptos could rise.

Initially, APT jumped to $12.60. But, as of now, it has dropped by 6.33%. This suggests that the news from Blackrock might not be enough to keep the price up.

According to BeInCrypto, Blackrock's announcement came during a broader market rally. The Aptos token saw a 21% increase right after. However, our analysis shows that a drop in Open Interest (OI) is one reason APT couldn’t hold onto the $12 mark.

Data from Santiment indicates that APT’s OI was close to $200 million on November 13. But it has since fallen to $105.37 million. Open Interest refers to the total number of active contracts in the futures market that haven’t been settled yet. When OI goes up, it means more traders are entering the market. This can strengthen the current trend. On the flip side, a drop in OI may signal that the trend is losing steam.

With the decline in OI for Aptos, there’s a chance the price could keep falling. The Chaikin Money Flow (CMF) indicator also suggests that Aptos may struggle to bounce back. The CMF tracks how much of an asset is being accumulated or distributed over time. It ranges from -1 to +1. A rising CMF means accumulation is happening, which can lead to a price increase.

Unfortunately, in APT’s case, the CMF reading has dropped. This indicates that selling pressure is starting to outpace buying pressure. If this trend continues, Aptos’ price could slide below $11.69.

Looking at the daily chart, Aptos faces resistance at $13.72 and has support at $10.43, just below the 23.6% Fibonacci retracement level. Given the recent drop in trading volume, Aptos could continue to slide, making it tough for bulls to maintain support at this level.

Low trading volume often suggests a lack of interest in the market. This makes it hard for buying pressure to increase. If this pattern holds, APT’s price might drop to $9.85.

However, if buying pressure increases, that prediction could change. If more people start accumulating APT, the price could bounce back toward $14.13.