Aptos (APT) Token Unlock: Will it Spell Trouble for Traders?
The layer-1 cryptocurrency developed by former Meta (Facebook) engineers, Aptos (APT), is facing a significant event on April 12, Friday. A scheduled token unlock worth nearly $300 million may lead to a massive sell-off, impacting the market. Here’s what you need to know:
Token Unlock Event Details
- Vesting contracts will unlock 24.84 million APT by the end of the week, totaling $298.11 million.
- This accounts for 6.2% of Aptos’s market capitalization, making it a crucial event for cryptocurrency traders.
- ‘Core Contributors’ and ‘Investors’ will receive 81.7% of the unlocked tokens, with 20.3 million tokens distributed between them.
- The remaining 4.54 million APT will be split between the ‘Foundation’ and the ‘Community’.
Impact on the Market
- The unlock represents almost 50% of all the $601.59 million cliff unlocks expected in the next seven days.
- Cryptocurrencies like Arbitrum (ARB), Starknet (STRK), ApeCoin (APE), and Render Network (RNDR) will also experience similar token unlocks.
Aptos (APT) Price Analysis Post $300 Million Token Unlock
Aptos traders have already initiated sell-offs in anticipation of the impending token unlock. Here’s a breakdown of the price movements:
- Aptos reached a peak of $19.34 per token on March 26 before entering a downtrend.
- Between April 3 and 8, the cryptocurrency tested the 50-day EMA support at $13.5 but failed to hold, resulting in a drop to $11.83.
- The daily chart indicates possible support levels at $9.50 and $8.00 following the unlock event.
Potential Price Range
Considering the unlock sell-off, APT could navigate through a price range targeting the identified support levels post-event.
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