ApeCoin price is likely to fall flat towards $4 for these reasons
- ApeCoin price shows resistance under two crossing moving averages.
- APE price shows a tapering look on the Volume Profile pattern but breached extremely oversold territories on the Relative Strength Index.
- Invalidation of the bearish trend remains at $6.15.
ApeCoin price is in a tough spot for bulls in the market. A countertrend scalp would be more favorable after a breach of the lows.
ApeCoin price is in a jam
Apecoin is currently auctioning just below the mid $5.00 region that failed to act as support during September. A bearish cross of the 8- and 21-simple moving averages has occurred while APE price hovers below.
ApeCoin price auctions at $5.28, The volume profile indicator shows a tapered, which suggests the downtrend is weakening. Still, the Relative Strength Index fell into extremely bearish territory upon the recent $.00 swing lows. Placing an early entry for this reason is ill-advised.
APE/USDT 6-Hour Chart
Bulls should remain cautious around the current price level as the crossing moving averages could catalyze a sweep of the lows event targeting the $4.00 liquidity level. Such a decline would result in a 25% decrease from the current market value. A better opportunity to go long could present itself if the $4.00 zone is breached in the coming days.
Invalidation of the bearish thesis is a breach above the $6.50 resistance level. If this level is tagged, a potential rally towards the August high at $7.50 stands a fair chance of occurring. Such a move would result in a 42% increase from the current ApeCoin price.
In the following video, our analysts deep dive into the price action of Apecoin, analyzing key levels of interest in the market. -FXStreet Team
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
