The cryptocurrency market is demonstrating strong performance, with Ethereum (ETH) prices jumping more than 5 percent today. This upward momentum has allowed several major altcoins, including Aptos (APT), to show signs of strength.
APT is currently exhibiting modest gains, but what is particularly noteworthy is its emerging “Power of 3” (PO3) reversal pattern. This specific structure frequently forms near significant market bottoms and often signals an early shift in trend direction.
Power of 3 Pattern in Play
On the daily chart, APT’s recent price structure closely aligns with the three distinct phases of the PO3 model: accumulation, manipulation, and expansion.
Accumulation Phase
From May through October, APT traded sideways within a broad consolidation zone. This zone was defined by resistance around $5.66 and support near $4.10. The extended range within these levels suggests a potential accumulation period, a phase where larger market participants often position themselves before a significant trend shift occurs.
Manipulation Phase
On October 10, APT experienced a notable price drop, breaking below the $4.10 support level and subsequently falling to $2.39 before initiating a bounce. This deep wick extending into lower price territories is characteristic of the manipulation phase, designed to shake out less committed investors before a possible bullish expansion begins.
Currently, APT is trading around $3.11, remaining within the manipulation zone as depicted on the chart.
What’s Next for APT?
APT is still situated within the manipulation phase, which indicates that short-term volatility is a likely scenario. The upcoming price action at key levels will be crucial in determining whether the expansion phase of the PO3 pattern begins to materialize. A confirmed breakout above the $4.10 resistance level, coupled with a successful reclaim of the 200-day moving average currently at $4.58, would serve as a strong signal of a bullish shift in momentum.
Should APT successfully break above the $5.66 resistance level, it could potentially trigger a substantial upward movement, targeting the $8.92 zone. This would represent a significant potential increase of 184% from its recent low.
The current market structure is already exhibiting early indicators of a potential reversal. While definitive confirmation is still pending, the developing PO3 pattern suggests that APT may be preparing for a significant upward trend. This trajectory is contingent on buyers maintaining strength and successfully reclaiming these critical resistance levels.