Aptos price recovery hanging by a thread with upcoming APT token unlock


The upcoming Aptos token unlock event threatens to pull APT price down further cutting short its recent recovery attempt.

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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

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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.

Aptos (APT) token vesting schedule. Source: CryptoRank

The systematic monthly release aims to promote stability and gradual growth within the ecosystem.

Potential impact of tomorrow’s token unlock on Aptos price

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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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