This is why ApeCoin price could erase a week’s worth of gains
- ApeCoin price is backtracking its steps and could undo the gains seen over the last week.
- Investors can expect APE to retrace 15% to the $4.28 support level.
- A four-hour candlestick close above $5.59 will invalidate the bearish outlook.
ApeCoin price has been on a steady uptrend for the last week, but things are coming to a halt and could potentially start a reversal. Investors need to be careful about the pullback as it could undo the gains and cause more harm with the risk of a further collapse in the market value of APE.
ApeCoin price faces exhaustion
ApeCoin price rallied 25% since the June 30 swing low at $4.20. This run-up pushed through the $5.02 hurdle temporarily, but the buyers failed to step in and sustain this recent flip. As a result, APE moved below the said level, indicating that a downtrend is on its way.
As ApeCoin price trades below the $5.02 hurdle, investors can expect this downtrend to continue especially since Bitcoin price is also retracing after a bullish 48 hours. In such a case, APE is likely to breach the declining support level and visit the $4.28 support level.
In some cases, ApeCoin price could revisit the $3.78 foothold, where buyers can step in and attempt another recovery rally. This downswing would constitute a 13% move to $4.28 or even extend to a 22% fall to $3.78.
APE/USDT 4-hour chart
While things are looking gloomy for ApeCoin price, a sudden spike in buying pressure that pushes APE higher could sidestep this pessimistic outlook. If ApeCoin price produces a four-hour candlestick close above the $5.59 hurdle, it will invalidate the bearish outlook.
In such a case, APE could climb higher and retest the $6.09 hurdle.
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.
