- ApeCoin price faces rejection at a resistance confluence around $5.02.
- The ongoing retracement is likely to stop and reverse around the $3.78 support level.
- A four-hour candlestick close below the $3 psychological level will invalidate the bullish thesis for APE.
ApeCoin price produced three distinctive swing lows that represented a bottom. This setup was followed by a run-up that pushed APE to rally extensively. However, the lack of momentum has caused the altcoin to retrace and recuperate – in a likely prelude before another leg-up.
ApeCoin price ready to ‘go APE’ again
ApeCoin price set a swing low at $3.20 on June 12 and this consolidation created a bottom for APE, allowing buyers to overcome the sellers and take control.
As a result, APE rallied 56% since the last June 19 swing low at $3.11. As ApeCoin price approached the $5 psychological level, it was faced with a confluence of resistance by the declining trend line connecting the lower highs formed since May 23 and the horizontal blockade at $5.02.
A rejection here has pushed ApeCoin price into a downtrend, which is likely to continue until a stable support level at $3.78 is tagged. This move will provide buyers with an opportunity to trigger a bounce that pushes APE up by 62%.
This rally, however, will overcome the $5.02 barrier to tag a new one at $6.09.
APE/USDT 4-hour chart
Regardless of the bullishness, a breakdown of the $3.78 barrier will indicate a weakness among buyers. In such a case, ApeCoin price is likely to retrace to $3. A four-hour candlestick close below this psychological support floor will invalidate the bullish thesis for APE.
This development could further crash ApeCoin price by 16% to the $2.50 foothold.
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