The post Aptos: Spot, derivative traders in a tussle – What’s next for APT? appeared on BitcoinEthereumNews.com.

Spot traders appear to be preparing for a potential rally, reducing the available supply of APT on exchanges. Derivative traders are taking a bearish stance — many are selling or placing short positions. Aptos [APT] has demonstrated impressive performance in recent weeks despite current market sentiment. Over the past month, the asset has gained 24.34%, while weekly gains stood at a notable 12.76%. At press time, spot traders had the upper hand, helping APT achieve a modest daily increase of 1.08%. However, the sustainability of this rally remains uncertain. The key question is whether bullish momentum can withstand bearish pressure from the derivatives market. Spot traders seize control of bullish momentum APT’s recent gains can largely be attributed to the actions of spot traders who have taken a bullish stance. Data from the Exchange Netflow—a metric that tracks the inflow and outflow of APT across crypto exchanges—showed negative values for two consecutive days. On the 16th and 17th of November, $2.03 million and $938.67K worth of APT, respectively, were withdrawn from exchanges. This trend demonstrated a shift in sentiment among traders. Source: Coinglass Negative Exchange Netflow typically indicated that more assets are being moved out of exchange wallets into private wallets, suggesting accumulation for long-term holding. This reduction in circulating supply on exchanges created a supply squeeze, often contributing to upward price pressure. Derivative traders remain aggressive Derivative traders continued to dominate the market with a bearish stance, as key on-chain metrics, including Open Interest, Liquidations, and the Long-to-Short ratio, signaled declining confidence in a price rally. Data from Coinglass revealed a significant drop in Open Interest, which fell by 8.03% to $255.58 million. This indicated that most unsettled contracts were now driven by short traders, who have taken control of the market momentum. Source: Coinglass Simultaneously, long liquidations have…

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Filed under: News - @ November 17, 2024 10:09 pm