Two key levels set to determine ApeCoin price’s next move

ApeCoin price is pulling back after struggling to break resistance at $7.80, coinciding with the ascending channel’s upper boundary. As analyzed last week, investors were eagerly waiting for action above $10.00, but profit booking saw the token U-turn to $7.32 at the time of writing. If support from the 100-day Simple Moving Average (SMA) on the daily chart cracks, ApeCoin might explore levels toward $6.05.

ApeCoin Price Ignores Bullish Signs

The Moving Average Convergence Divergence (MACD) on the daily chart has confirmed ApeCoin’s ability to keep its uptrend intact several times since early June. An ascending parallel channel also helped APE’s recovery, but the seller congestion at $7.80 has thrown bulls off balance. If investors heed the bullish signal from the MACD’s position above the mean line, they might cut short the ongoing correction and focus on trading above the channel and beyond $10.00.

APE/USD Daily Chart

A buy signal from the Super Trend indicator affirmed the bullish breakout on July 17. Although the call to go all-in on APE is still in place, holding the price at the channel’s throughline is becoming increasingly difficult. Therefore, it is imperative to consider making new entries at $6.05.

ApeCoin price will likely be flanked by immense buying pressure at $6.05 and the supply area at $7.29, as per IntoTheBlock’s IOMAP on-chain metric. Approximately 7,000 addresses previously scooped up 18.97 million APE tokens in the upper limit ($7.29). Due to this resistance, the chances of ApeCoin price significantly breaking out remain thin.

ApeCoin IOMAP chart

On the downside, bears will have to work extremely hard to disperse around 1,800 addresses that previously purchased 22.79 million APE tokens at $6.05. As long as this support remains intact, ApeCoin price may capitalize on the stability to build momentum for an ultimate breakout.

In other news, ApeCoin announced the launch of a decentralized autonomous organization (DAO) to build its ecosystem. The community has been encouraged to share ideas to help drive Web3 forward. ApeCoin will provide key resources for selected ideas, saying that the “sky is the limit.”