Decoding what this support level breakdown means for ApeCoin price
- ApeCoin price has slowly flipped the $7.37 support level into a resistance barrier during its three-week downtrend.
- Investors need to be patient as APE could drop another 15% as sellers are in control.
- A recovery above $7.37 would invalidate the bearish thesis.
ApeCoin price has been indulging the bears as it slowly but steadily heads lower. This downswing has caused APE to slice through stable support levels in the last few weeks.
ApeCoin price prepares for more selling
ApeCoin price set a swing low at $4.93 after the panic selling on May 12 subsided. As a result of the extremely oversold zone, buyers stepped in for a brief moment, triggering a 104% recovery rally to $9.82.
This move from $4.93 to $9.82 turned into a range that ApeCoin price has been traversing for more than three weeks. During this consolidation, APE has constantly produced lower highs with no bulls to dispute the free reign of bears.
As a result, APE has crashed through the midpoint of this range at $7.37 and flipped it into a resistance barrier. This move led to consolidation that created another support level at $6.01, only to be breached on June 8.
Now, ApeCoin price is hovering below the aforementioned level and is likely to head lower and sweep the range low at $4.93 before any buyers step in. Therefore, investors can expect APE to drop another 15% in the coming days.
APE/USDT 4-hour chart
While things are looking bearish for ApeCoin price, a quick recovery rally that pushes APE to flip the $7.37 hurdle into a support floor will invalidate the bearish outlook. However, for such an outlook, ApeCoin price needs to overcome the $6.01 hurdle and rally 22% first.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
