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Here's Why You Need to Watch Aptos Closely During This 14% Rally: Crypto Market Review, Nov. 17

Thu, 11/17/2022 - 23:50
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Arman Shirinyan
Despite problematic start, Aptos is showing some signs of recovery on market
Here's Why You Need to Watch Aptos Closely During This 14% Rally: Crypto Market Review, Nov. 17
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Unfortunately, the recovery of the cryptocurrency market that started at the beginning of this week seems to be ending, with the majority of assets tumbling to their lows despite the positive price performance after the dust around FTX settled. However, assets like Aptos are still showing some significant gains despite the poor state of the market overall.

Aptos 14% price spike

Despite losing more than 50% of its value since reaching a local high in October, APT has surprisingly shown resilience on the bearish market despite the continuous selling pressure coming from airdrop receivers and early investors.

The path of APT on the market has been rough from the beginning as the asset lost around 70% of its value seconds after listing on the first exchange. There are numerous reasons behind such a questionable price performance: a massive airdrop after the release of the testnet and a large concentration of funds in the hands of venture investors.

APT Chart
Source: TradingView

Aptos is a logical continuation of the Diem cryptocurrency that failed to launch under a protectorate of one of the biggest corporations in the world, Meta (Facebook, at that time). Regulatory pressure forced the company to abandon the crypto project and focus more on its main products.

However, the crypto core of the project stuck around and developed the project further, rebranding to Aptos and attracting even more venture capital that allowed them to list on most major trading platforms.

However, a significant volume of tokens in the hands of institutional investors is not a positive factor for Aptos and will most likely backfire in the future if the token succeeds on the market.

Cardano is at bottom, again

The bottoming of Cardano was just a matter of time as prominent Ethereum competitors had been constantly struggling on the market due to the lack of inflows to the assets. In contrast to cryptocurrencies like Shiba Inu, Cardano has not been tanking due to unproportionally large holdings in wallets of small retail traders but rather due to a lack of fresh inflows to the asset.

ADA remains one of the least profitable assets on the cryptocurrency market. On data from back in August, fewer than 20% of all Cardano holders were profitable despite its relatively neutral performance on the market.

SOL and ETH Price Analysis for November 17

Such a dynamic shows that most investors have entered ADA at around local tops and could not break even after it. At press time, ADA is trading at $0.31 and has already reached the local bottom, which it successfully tested back on Nov. 10 and 14.

Unfortunately, the lack of trading volume could be a grim sign of a consolidation rather than an immediate bounce that investors may expect after the 15% recovery we already witnessed on Nov. 10.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.