Apecoin’s bullish attempt has no chance of success

Apecoin (APE) surprised both friend and foe on Wednesday by still eking out gains for the trading day. The gains are fully attributed to the jump in global markets in equities and cryptocurrencies on the back of a miss in US inflation numbers, which provided a glimmer of hope economic conditions might be easing. That hope is quickly fading as the dust settles, however, and several financial websites and newspapers are posting headlines  of Fed officials warning that they will either maintain their current rate of hiking or even increase it, where on Wednesday, markets thought a decline was in order.

APE price set to drop back at least $1

ApeCoin price is set to dip lower from $7.50 to $6.50, which is at the lower end of the week’s trading range. That level was nearly reached on Wednesday before the US CPI print and could be set up for a test before the start of the weekend. Once it gives way to bears, expect a drop towards $6, with the monthly pivot coming in as a supportive element and damage limited to a slim 10% decline.

APE price could see triple those losses, however, if it declines towards $4.80, and only one element could refrain bears from reaching that price target. That element is the 55-day Simple Moving Average (SMA), at around $5.50. Traders should automatically know that once that alert goes off, and the 55-day SMA has been tested, they will already be looking at a 20% decline, which could reach all the way to 30% once price action moves further south towards the aforementioned $4.80, at the monthly S1 support level.

APE/USD Daily chart

The only upside potential, for now, would come from a massive tailwind generated within cryptocurrencies or from the spillover effect of equities rising on the back of multiple days of gains over 1%. That does not look to be the case, and the silence on social media towards cryptocurrencies from several primary believers such as Elon Musk is not helping the asset class’s PR or attracting investor inflow. Expect, should those positive signals and tweets return, to see APE price hit $8 and the monthly R1, before jumping all the way to $10 above the 23.6% Fibonacci level.