Sideways markets are attractive for Elrond and Aptos, which record high price swings. This price action attracts market participants who are fed up with Bitcoin and Ethereum going sideways. They cut out both long and short positions.
Aptos is a crypto-exchange launch that was made a few days ago. Aptos has experienced huge price fluctuations since its inception. Elrond currently trades at $57, with a profit of 4% in seven days and 20% in 30 days. Aptos is trading at $7 and has suffered a 47% drop in 24 hours.
Retail traders get greedy, Betting On Elrond, and Aptos
NewsBTC had reported previously that Bitcoins and large cryptocurrencies will likely keep up their sideways movement in the weeks ahead. These sideways price movements could increase volatility for APT and EGLD as well.
In that sense, data from Santiment recorded an increase in the “Discussion Rate” across Twitter, Telegram, and other platforms. These cryptocurrencies are being discussed by retail traders which leads to more volatility.
The research firm said the following on Elrond and Aptos’s price action while sharingThe chart is below:
Both Aptos and Elrond are trending Wednesday, but for very different reasons. After the launch of its anticipated mainnet, $APT’s price plunged. However, $EGLD is enjoying some of the Telegram giveaways and shilling that have been made available to it.
This thesis is supported by additional data from Material Indicators. Elrond has been increasing its social media posts volumes, which retail traders are following closely. Traders with buy orders from $100 to $1,000 are bidding into EGLD’s price action.
On shorter timeframes, the cryptocurrency’s momentum is waning. As seen in the chart below, EGLD’s price is coming into heavy resistance at its current levels. This cryptocurrency’s price could be impacted by selling orders, which might make it more difficult to sustain its momentum.
Although more important cryptocurrencies tend to trend sideways in value, volatility or a rally in Aptos and Elrond might not last. Bitcoin and Ethereum could lose stability if there are too many traders who invest in these tokens.
According to a pseudonym trader, APT’s volatility and increasingParticipation could result in the loss of liquidity for other trading pairs. Price action can lead to sudden changes in direction for more popular cryptocurrencies. A situation that could be normalized while there’s no clear direction on the market.
After 1 day: $150 mil open interest, $3 bil futures volume, $1 bil spot volume…
This will drain liquidity from the markets.$APT https://t.co/iMupyE21It
— Byzantine General (@ByzGeneral) October 19, 2022