Aptos Price Climbs 4% Following ETF In-kind Redemption Update

Highlights:

• The price of Aptos has risen 4.87% to $4.97 as trading volume surges 72%, following Bitwise’s ETF update for Dogecoin and Aptos.
• Aptos forms a bullish cup and handle pattern with strong support at $4.47, signalling continued upward momentum.
• Aptos derivatives market shows intense market activity as OI and trading volume spike 26% and 78%, respectively.

As of 27 June, the Aptos price has broken out in a splendid show of bullish muscle, hitting the $5.24 mark, before retracing to $4.97 mark. These current levels mark a 4.87% increase, as its daily trading volume rallies 72%. The recent rise comes as Bitwise revised its proposed exchange-traded funds (ETFs) of DogeCoin and Aptos, including in-kind redemptions.

This adjustment has enabled investors to trade ETF shares with the underlying tokens, thereby enhancing investor confidence in APT. In-kind redemption structure is picking up popularity among institutional and retail investors because it is tax-efficient. As the debate on ETFs and redemption frameworks remains active among U.S. regulators, the decision marks institutional attention to crypto ETFs such as APT and Dogecoin. 

Aptos Price Eyes 25% Rally as a Cup and Handle Pattern Forms

The Aptos price is trading well within the confines of a cup and handle pattern. Today, the Aptos price rallied to a daily high of about $5.24 before retracing to the current price level at $4.97. Meanwhile, the 4-hour chart outlook still upholds a bullish sentiment, as the bulls try to regain stamina. The support zone at $4.47, aligning with the 50-day MA, gives the bulls the upper hand.

The Relative Strength Index (RSI) currently stands at 58.48, which means that the asset is still healthy and has the potential to move to the upside. Besides, the Moving Average Convergence Divergence (MACD) is also indicating a positive sign of momentum, which adds more weight to the point of bullish trend continuation. In the meantime, traders are at liberty to buy more APT tokens, unless the MACD changes. 

The fantastic growth of the Aptos derivatives market is observed due to a 78.33% growth in trading volume, and it has now exceeded the mark of $930 million. The open interest has also increased to 26.23% to reach 240.95 million. These increments can be considered as a symbol of the further increase of the interest of the retail and institutional investors in the APT.

The trader community has a favourable long/short ratio standing at 1.0036 in the past 24 hours. This demonstrates high levels of confidence by investors in the prospects of APT on the market.

APT Price Target $6 In the Short Term

In the next few days, the bullish trend can continue as the Aptos price pushing Aptos price to $6. The governing cup and handle pattern places APT firmly on a strong bullish channel where the next target should be around the region of $5, $5.28, and $5.42 resistance. 

On the downside, if a slight reversal is experienced in the Aptos price, the bears may chase the support zone at $4.88-$4.68. However, only a close below $4.47 will invalidate the current bullish trend. Given the splendid bullish grip in the Aptos market, if the momentum builds, a rally towards $6 could be plausible in Q3. In the meantime, traders should closely monitor the rising trading volume and the technical indicators to determine the next movement in APT.