Why it may be time to go long on ApeCoin price

ApeCoin (APE) price action could be bearing some low-hanging fruit with roughly 16% of gains in the making as APE price claws back to $4.889. That comes as the aftershock of the Bitcoin correction triggers broad buying across the cryptoverse this morning. Traders should be careful, however, as the current market conditions do not provide a supportive backdrop to  dip-buying.

APE price bears some low-hanging fruit

ApeCoin price holds some nice gains for traders that act disciplined once profit targets to the upside have been reached. APE price could make 16% gains as a return to the upside elicits  some broad buying interest in cryptocurrencies this Monday, as investors jump on low prices. Although this looks lucrative and a ‘once-in-a-lifetime’ opportunity, risks stemming from current global market dynamics focusing on inflation and recession worries have yet to be resolved.

APE price thus retains some limited upside potential. Traders need to keep in mind where the red descending trend line and the historic pivotal level at $4.89 come close and intersect to the upside, as this will be a key resistance level to watch. Add to this that the dollar’s strength is coming off a bit and there is room for a rally  towards the aforesaid level, booking 16% gains before a firm rejection which could push price-action back to the down towards $2.00.

APE/USD daily chart

Risk to the downside comes from markets going into a cramp at any moment, as several key economic data points come out this week. If the current downbeat sentiment gets reaffirmed in those economic data figures and recession woes flare up again, the current gains could easily be exchanged for bigger losses and new lows. APE price could then drop below $2.00 and hit rock bottom at the monthly S1 pivot level at around $1.07.