- ApeCoin price has returned to the $5.93 stable support level after a 15% downswing.
- This retracement is a bullish one and is likely going to result in an 80% bounce soon.
- A breakdown of the $5.02 support level will invalidate the bullish thesis for APE.
ApeCoin price has returned to where it was roughly five days ago and has followed Bitcoin’s recent downswing to arrive here. The pullback was a bullish retracement for the big crypto and the same can be said for APE, which shows massive rally potential.
ApeCoin price and bottom reversal pattern
ApeCoin price bounced off the $5.93 support level on May 27 after a brief period of consolidation. This run-up propelled APE by 25%, causing it to sweep the $7.19 hurdle briefly. However, the bulls failed to keep up the momentum, resulting in a top formation.
Due to Bitcoin’s downswing, ApeCoin price followed its lead, retesting the $5.93 support level where it currently trades. While this retracement might seem bearish, there is a possibility APE forms a triple bottom aka Triple Tap setup.
This technical formation requires a dip below the $5.93 barrier, followed by a quick recovery above the initially formed range low at $5.93. The final touch will arrive as ApeCoin price retraces lower to retest the formed low, completing the setup.
The resulting upswing will likely propel ApeCoin price to the 100 four-hour and 200 four-hour moving averages at $7.31 and $9.37, respectively. In a highly bullish case, this move could extend to the next hurdle at $10.68, bringing the total gain to 80%.
APE/USDT 4-hour chart
Regardless of the bullishness seen in ApeCoin price, if Bitcoin price continues to tank, altcoins will follow suit en masse. In such a case, if APE produces a four-hour candlestick close below the $5.02 support level, it will invalidate the bullish thesis.
This development will push ApeCoin price into a price discovery phase.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ethereum fees drops to lowest level since October, ETH sustains above $3,200
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
Solana, Base and AI meme coins rally, are speculative tokens making a comeback?
Meme coins are typically considered more speculative than the rest of cryptocurrency categories. Despite the label, hedge funds and institutional investors have warmed up to meme coins this cycle.
RWA narrative could make a comeback after nearly 50% correction in CFG, ONDO, MKR
Bitcoin halving and developments in the AI sector are the key narratives this cycle. The Real World Asset (RWA) tokenization narrative gathered steam with BlackRock’s tokenized asset fund launch on Ethereum in March 2024.
These cryptocurrencies could face selling pressure according to an analyst: STRK, ENA, OMNI, JUP, ONDO
Thor Hartvigsen, investor at Heartcore Capital and a crypto analyst has identified a list of cryptocurrencies that are expected to see a massive increase in their supply. Typically, an increase in selling pressure negatively impacts an asset’s price.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.