ApeCoin price could double as summer rally kicks in

ApeCoin (APE) price is set to rally back towards more common levels from before when dollar strength kicked in at the beginning of this month. Expect to see APE price return to the 23.6% and the 38.2% Fibonacci level and possibly test the 55-day Simple Moving Average (SMA) for resistance as the dollar fades and opens a big gap of upside potential. Expect to see bulls and investors return with that gap as a summer rally finally looks to be underway.

APE price set to jump back above $10.00

ApeCoin price shows its first signs of recovery and is possibly ready to enter a fierce rally towards $14.00. Support has come from tailwinds spilling over from equity markets that are up this morning and look to have avoided a weekly close in bear market territory. This helped trigger more cash and investment inflows as investors shifted back towards the buy-on-dips-mentality. 

For APE price, this means an influx of bulls overweighing bears and setting the stage for a return above the 2.6% Fibonacci level at $9.76, just shy of the $10.00 marker. Once through there, expect to see the next jump unfolding toward $11.34 at the 38.2% Fibonacci level. At this pace, by the end of this week, $14.00 could be ticketed and, in the process, a break above the 55-day SMA, which will be conceived as the end of the downtrend and possible new all-time highs to come during Summer.

APE/USD daily chart

A new geopolitical chapter could be around the corner as Biden commented that the US would use military force against China if it attacked Taiwan. Although there is a longstanding agreement between the two nations on using force, this came as a shock to the markets but was quickly backtracked by the White House as a wrongly phrased paragraph. But it puts tensions between the two nations on alert again and could trigger a sharp risk-off move should it come to that, with APE price set to tank back to $5.00.