Aptos price recovery hanging by a thread with upcoming APT token unlock
invezz.com 11 July 2024 10:54, UTC The upcoming Aptos token unlock event threatens to pull APT price down further cutting short its recent recovery attempt.
At press time, Aptos (APT) was trading at $6.21, down 65.51% from it’s a high of $18.14 reached in March this year. Prior to the recent decline, APT’s price had skyrocketed in the first few months of 2024 buoyed by NFTs and real-world asset (RWA) integrations.
Next APT token unlock event scheduled for July 12
On July 12, 2024, Aptos is set to release $69.44 million worth of APT tokens, representing approximately 2.49% of its total APT token supply.
A total of 11.33 million APT tokens will be injected into the token’s circulating token supply one the tokens are unlocked.
This token unlock event marks a significant moment for Aptos, as it could significantly influence the market dynamics and the token’s value.
Aptos, which launched its mainnet on October 12, 2022, has a total supply of 1 billion APT tokens that were to be distributed over a ten-year period with a portion of tokens unlocking each month according to the provided Aptos tokenomics overview.
51.02% of the token supply will be distributed to the community, 19.00% to core contributors, 16.50% to the Aptos Foundation, and 13.48% to investors.
The systematic monthly release aims to promote stability and gradual growth within the ecosystem.
Potential impact of tomorrow’s token unlock on Aptos price
Historically, token unlock events lead to increased volatility in the cryptocurrency market and tomorrow’s Aptos token unlock is no exception.
Looking at Aptos’ price history, traders should keep a close eye on key support levels at $5.96 and $5.30, and the resistance levels at $6.55 and $7.44.
If the impact of the token unlock will be mild and the price succeeds in breaking above the resistance levels, it could target the $9.92 level, aligned with the EMA 200 average.
Conversely, if the token unlock event results to a price decline, a close below $5.30 might introduce additional selling pressure, potentially leading to a further decline in the token’s value.
It is important to note that APT price has experienced a steep decline from above $18 in March to its current price. There is a feeling that the upcoming token unlock could exacerbate this downward trend, as a sudden influx of tokens into the market might lead to increased selling pressure.
As a result, traders and investors should remain vigilant during this period, closely monitoring price movements and market reactions ahead and after the token unlock.
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