Apecoin price to continue early Monday recovery as $4 is back on the radar

Apecoin (APE) price shows good signs of a recovery trade being underway after a firm sell-off throughout May. As a small rebound is being noticed on the charts, more upside potential is present as the overall outlook for this week falls in favor of the bulls. With a very light economic calendar and markets being a bit less on edge over diminishing tail risks, more upside potential is in the cards with at best a 20% profit. 

Apecoin price primed for a 20% recovery to $4

Apecoin price had to say goodbye to $4 ever since May began. With the market phrase “sell in May and walk away” on every trader’s mind,  the proverb fits the picture painted on the price action chart. A turnaround looks to be a possibility from here on as the key level at $3.40 is under pressure. A break to the upside now looks likely.

APE has some tailwinds coming in from a light economic calendar and a few tail risks deflating, creating some room for bulls to head higher. Once $3.40 is broken to the upside, expect to see a quick pop to the monthly S1 near $3.52 and $3.60. The last challenge lies at $3.80, which holds the key to unlocking that $4 level. Here the bulls will test the 55-day Simple Moving Average (SMA) for a possible break or rejection at first.

APE/USD  4H-chart    

As mentioned above, the first high level is $3.40, where initial resistance can be found. In case bulls are unable to pare that resistance and break above it, expect to see a snap lower and head back to $3.20. In case selling pressure continues, a new low could be printed with APE testing $3.06.