ApeCoin price finds itself under dark clouds as relief rally stalls
|- ApeCoin price has been enjoying a two-day winning streak since Monday.
- APE price, however, takes a step back and is paring back gains from Tuesday.
- At risk could be a negative weekly close on Friday, with $5 being breached to the downside.
ApeCoin (APE) price has been printing solid gains of over 6% since Monday morning. Traders that respected the $5 marker are currently seeing a nice return. As the week advances, it looks time to get out of that trade and book those profits, however, as dark clouds are gathering with more worrying headlines on the wires that point to another leg of escalation in geopolitical risk.
APE price sees dark clouds gathering over its relief rally
ApeCoin price is on the cusp of ending its two-day relief rally. On Monday, bulls came storming out of the gates and picked up several assets at low prices within or near a substantial supportive level. That trade looks to be coming to an end now as markets are nervous on the back of missile exercises from South Korea and the US in response to the missile launch by North Korea.
Although APE prices and markets have grown accustomed to North Korean missiles, it is the first time that a missile has gotten so close to Japan and even overshot it, and secondly, the US is undertaking joint military exercises with South Korea. It signals to the markets that the next time North Korea does something, the US will respond. For ApeCoin this could mean that price action gets hammered to the downside. In such a scenario, expect a drop to $5 by the end of this week with a possible break lower towards $4.27, where the monthly S1 support level and the low of September come into play.
APE/USD Daily chart
Alternatively, a more bullish forecast would see this as just a short period of profit-taking . In such a scenario, expect to see a return back to $5.34 as the 55-day Simple Moving Average gets challenged. A break to the upside would see the price target rise towards $5.80.
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