|

ApeCoin bulls need to wait for profit-taking before APE price begins its upward trajectory to this level

  • Apecoin price is already down over 10% since last Saturday.
  • APE still needs to drift lower in search of vital support.
  • Expect support to kick in either 5% or 10% lower than current price.

Apecoin (APE) price is in no condition just yet for a bounce higher as clearly the rejection from the past weekend is still giving bulls a hangover. The decline came on the back of another rejection at the 200-day Simple Moving Average (SMA), which triggered a very broad fade that already carries over a 10% loss from top to bottom. Support is set to kick in either at the monthly support or at the low from March.

Apecoin bulls await that RSI bounce before buying

Apecoin price could be a copy of the Indiana Jones opening scene in which our hero needs to run for his life as a giant stone boulder nearly paves him into the ground. Bulls must be thinking the same since this weekend as the slide is ongoing for a fourth day in a row now. With a decline that bears more than a 10% loss from top to bottom, not one bull would be mad enough to start buying already.

APE is thus primed for another leg lower with two scenarios on the table for bulls to decide where to enter at. The first is at the monthly S2 support level near $3.85, which triggers a technical bounce off that area. The second entry level would be at the low of March around $3.70 and would make more sense as the Relative Strength Index (RSI) by then will have traded into the oversold area as well by then.

APE/USD  4H-chart    

APE/USD  4H-chart    

Clearly, sentiment has been changing as US equities are rallying higher in early morning trading. A similar pattern in Europe as risk-on is clearly the favored sentiment for this Tuesday. This could be enough for bulls to start buying in the blind and see APE spiral higher toward $4.27 by the end of the US session later this Tuesday.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

More from Filip Lagaart
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.

Bitcoin slips below $87,000 as ETF outflows intensify, whale participation declines

Bitcoin price continues to trade around $86,770 on Wednesday, after failing to break above the $90,000 resistance. US-listed spot ETFs record an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals.

Michael Selig assumes role as new CFTC Chair, what does this mean for crypto?

Michael Selig has been sworn in to serve as the 16th Chairman of the Commodity Futures Trading Commission. Selig was confirmed by the US Senate to head the commission last week, following his October nomination by the US President Donald Trump.

Crypto.com hires sports trader for event prediction market-making

Crypto.com plans to recruit a quant trader for the sports market-making team to buy and sell financial contracts related to these events. Opponents argue that internal trading desks put operators or their affiliates on the opposite side of customer trades. 

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.