ApeCoin price is at risk of falling into a bull trap if bulls let price action tank today

ApeCoin (APE) price has used the rally in equities late last night in the US afternoon session to bank on and squeeze out a 15% intraday profit at the closing bell. Not bad for a Monday as markets were on the back foot in the European session. With a daily close above an important double cap, the future looks bright, although that dream is being smashed currently as price action is slipping back at or below that double cap and at risk of turning into a bull trap.

ApeCoin price on loose screws 

ApeCoin price sees bulls still popping champagne on the back of the rally from Monday, with over 15% of gains booked at the closing bell. However, the party and the hangover this morning could start to bite, as price action is dropping over 2% and is currently drilling on the important caps that were broken to the upside on Monday. Should those caps break and not provide the support expected, prepare for a full meltdown of the price action with a drop back to $5.01.

APE price is thus flipping a coin which could either come up as a bull trap or, as the 55-day Simple Moving Average (SMA) and the monthly pivot being overturned into bullish elements that can provide the support needed to push price action higher. Rather expect a bull trap and see price action pare back the gains from Monday to $5.01 with the next $4.27 as a level to test to the downside. That would mean a 25% devaluation from where ApeCoin is currently residing.

APE/USD Daily chart

A bullish scenario would see the double cap turned into double support. It would also be vital to see price action stay above these two elements or at least have a daily close above. The next step would be to break the top of Monday and see a rally towards $7.00 by the end of this week.