|

Will the downtrend for the ApeCoin price continue? Here are a few factors to keep in mind

  • ApeCoin price has produced a capitulation below the May 12 lows at $5.30. 
  • APE price has printed a new low on the Relative Strength Index.
  • Invalidation of the free-fall scenario could be a breach above $4.52.

ApeCoin price is more of a guessing game than most cryptocurrencies. The newly established low at $3.07 should have a retest to define a true market bottom but forecasting when is nearly impossible.

ApeCoin price has a double scenario

ApeCoin price has validated previously written outlooks at FXStreet as the May 12 low at $5.17 has been a critical area of interest over the last few weeks. ApeCoin price produced sideways price action from the middle of May into early June before the anticipated breach at $5.30 occurred on June 11. The anticipated bearish target zone triggered a sellers’ frenzy, leading to a colossal decline into the extended $3.17 target. Now that the extended target has been reached, the ApeCoin price has a double scenario.

ApeCoin price could either go sideways for another week or plunge into the $2.00 price level in free-fall fashion. The Relative Strength Index has printed a new low on the 4-hour chart, which deems the NFT token in a downtrend until drastic changes occur. Traders should be cautious of jumping in too early to play the range, as a retest of $3.07 could trigger the final blow into $2.00. 

tm/ape/6/16/22

APE/USDT 4-Hour Chart

A safer invalidation to confirm the range will be a breach above $4.52. If this level is breached, the APE price could establish additional bullish hurdles into $4.75 and the recently capitulated liquidity level at $5.17. Said price action would result in a trading range with a high marked 50% above the current ApeCoin price.

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

More from Tony M.
Share:

Editor's Picks

Crypto Today: Bitcoin, Ethereum, XRP extend decline, pressured by increasing ETF outflows

Cryptocurrencies are trading under pressure on Thursday, weighed down by risk-off sentiment driven by Middle East tensions and macroeconomic uncertainty. Bitcoin has extended its decline below $65,000 and is targeting the key support area at $60,000.

Bitcoin’s massive storm is back: Why the sell-off is far from over

Bitcoin price action over the last few weeks has felt less like a normal, healthy correction and more like a slow grinding crash that continues to wreak havoc on holdings and trading accounts. And everything suggests that the dramatic crash isn’t over.

Hyperliquid and Near Protocol fall sharply as Arthur Hayes dumps HYPE and NEAR for Worldcoin

Hyperliquid (HYPE) and Near Protocol (NEAR) prices have dropped 11% and 17%, respectively, at press time on Thursday, erasing gains as the well-known investor Arthur Hayes dumps HYPE and NEAR holdings.

Pi Network hits record low as market-wide risk-off sentiment weighs

PI price hovers around $0.1300 at press time on Thursday, reflecting a mild rebound from the $0.1186 record low reached earlier on the day. Deposits totaling roughly 1 million PI tokens on exchanges over the last 24 hours suggest waning investor confidence amid a broader market risk-off sentiment.

Billions in ETF outflows don’t bode well
Bitcoin (BTC) remains under pressure, trading below $74,000 on Friday, and is set to post its third consecutive week of losses. The institutional sell-off continues, with spot BTC Exchange-Traded funds (ETFs) recording billions in outflows. In addition, sticky inflation and macroeconomic headwinds suppress the Crypto King’s upside potential. Institutional demand continues to weaken so far this week.