This is the reason why ApeCoin is primed for a massive price movement

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.