ApeCoin Price Prediction: What’s next for APE after a 33% rally?
|- ApeCoin price shows weakness after a 33% rally as it produces long top wicks with short bodies.
- A breakdown of the $6.58 level will trigger a 24% crash to the $5.16 support barrier.
- On the other hand, if the $7.28 support level is overcome, the bearish thesis will face invalidation.
ApeCoin price shows that its strong rally is coming to an end. This development will be confirmed once APE produces a four-hour candlestick close below an immediate support level.
ApeCoin price readies for a U-turn
ApeCoin price swept below the July 19 and July 21 swing lows formed at $5.60 on July 26 but recovered quickly, indicating the presence of bullish sentiment. As a result, APE rallied 32% and swept above the July 22 swing low and collected liquidity.
After this event, the three candlesticks on the four-hour timeframe had long upper wicks and small bodies, denoting an increase in selling pressure. A confirmation that a reversal is in place would arrive after APE flips the $6.58 support into a resistance barrier.
This move will confirm that the bearish momentum is higher than the buying pressure and trigger a move that could revisit the $5.16 support level. Beyond this barrier, a further downward move is unlikely due to the consolidation that took place between June 25 and July 12.
In a highly bearish case, where sellers tear through this consolidation area, they will be rewarded with liquidity in the form of sell-stops below the $4.28 support level.
APE/USDT 4-hour chart
On the other hand, if buyers make a comeback, pushing APE above the $7.28 support level, it will indicate a resurgence of bullish momentum. If ApeCoin price produces a daily candlestick close above this level, it will invalidate the bearish thesis.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.