How to ride the ApeCoin price recovery to $5.50 successfully?
- ApeCoin price shows a falling wedge formation, suggesting a bullish outlook.
- A successful breakout could result in a move to $5.54 but could extend to $6.02 if momentum persists.
- A daily candlestick close below $4.28 will invalidate the bullish thesis for APE.
ApeCoin price has been on a massive downtrend as most altcoins have in the last month. However, APE seems to be coiling up to trigger a massive and explosive recovery rally.
ApeCoin price poised for breakout
ApeCoin price has formed a falling wedge, consisting of lower highs and lower lows over the last two days. This technical formation contains a string of lower highs and lower lows connected using trend lines.
The setup forecasts an 11% upswing to $5.12, determined by measuring the distance between the first swing high and swing low to the breakout point. Although ApeCoin price has not broken out yet, investors can assume it wil occur around the $4.56 level.
However, falling wedge targets often reach the pattern's peak, indicating that APE could rise from $4.56 to $5.54. This move would constitute a 22% upswing and is likely where a local top could form.
Conservative traders could book profits here and be done with it. But the imbalance, aka Fair Value Gap (FVG) present at $6, could be the ultimate target as ApeCoin price breaks out of the bullish reversal formation.
APE/USDT 12-hour chart
On the other hand, if ApeCoin price fails to break out from the falling wedge formation but instead slides lower, it will indicate buyers’ weakness. If APE produces a daily candlestick close below the $4.28 stable support level, it will create a lower low and invalidate the bullish thesis.
This development could see ApeCoin price crash to $3.93 in search of a stable support level.
Note:
The video attached below talks about Bitcoin price and its potential outlooks which could influence ApeCoin price.
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.
