|

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:

Editor's Picks

Ripple bulls eye another breakout with $1.70 in sight

Ripple (XRP) upholds a strong bullish outlook, while consolidating near $1.50 on Tuesday. A 72% rally last week pushed the token to $1.70 before it pulled back to seek support amid possible profit-taking and an overstretched market trend.

Polygon extends rally as bull market discovers steady network growth

Polygon (POL) advances to a steady recovery above $0.1200 on Tuesday for the fifth consecutive day, sustaining its 45% gains from last week. The Polygon network is witnessing steady growth in transaction activity and real economic value.

Crypto Today: Bitcoin soars past $80K as Ethereum and XRP hold gains

Bitcoin (BTC) is trading above $80,000 on Tuesday. This is the highest level the Crypto King has traded since mid-May, underscoring a positive shift in investors' risk-on sentiment, liquidity conditions and the technical outlook.

Bitcoin rally above $80,000 shows signs of overheating 

Bitcoin extends gains, trading above $80,000 at the time of writing on Tuesday following its strongest weekly rise in more than three years. Institutional demand continues to support this rally, with spot ETFs recording positive inflows on Monday.

Bitcoin: The US Treasury saves BTC

Bitcoin extends gains, trading above $77,000 on Friday after rallying over 20% and reaching its highest level since mid-May. Crypto markets continue to cheer the US Treasury’s decision to double its debt buyback operations, posting their 7th-largest liquidation event in history.