ApeCoin (APE) Shows Signs Of Recovery, But Mini-Rally Could Be Short-Lived
ApeCoin has had a long and complex history. When it was first released on March 17, it was immediately put to the test by the same market forces that were responsible for the general crypto market’s slump.
The coin’s price has broken through the resistance of a head-and-shoulders pattern, rising to a new all-time high of $5.63. This may portend an impending upswing, but technical signs are pointing in the opposite direction.
Overall, both bulls and bears have been able to make little gains in APE coin, making the overall trend neutral. There is a double bottom pattern on the coin as well. This pattern could foretell a continuation of the current downward trend.
ApeCoin: Robust Buy Signals Likely
However, this downward tendency has not materialized, yet. The current APE coin mini-rally may be a short-lived upsurge following the decline that began on September 13.
There have been double bottoms and single bottom reversals in the price of APE coin recently. Bearish feeling among investors can only be reversed if the price is able to sustain itself at the 78.60 percent fib level. The result may be more robust buy signals for market participants.
We anticipate that APE’s price will rise when the crypto market recovers alongside the broader financial sector. And that’s if the cryptocurrency market can ignore the impending bad CPI news and interest rate increase.
The value of alternative cryptocurrencies like APE coin is highly correlated with Bitcoin’s market price. This coefficient is now at 0.73 as of this writing. A high degree of correlation between the two currencies indicates this.
Short-Term Performance: Finding Support
The short-term performance of the ApeCoin is “acceptable,” but only with access to real-time data. As of this writing, the cryptocurrency is trading above the 78.60 Fib level and attempting to find support there. Taking the coin’s track record into account, this may just be a momentary victory.
The APE coin’s value will rise as a result of a general uptick in the economy and financial markets. Critical aid can be found between $4.24 and $4.60. Both the price drops and price increases that the coin has seen have been maintained and sustained by these two factors.
The $4.60 support level is where the price can find a floor before falling to the $4.24 area. However, the recovery of APE coin may fail if bears also break through the $4.24 support.
However, recent market data indicates that APE currency is showing signs of recovery. At the 1-hour time frame, the coin has firmly established above the 78.60 fib level. As the cost levels off, dealers and investors may gain confidence.
APE total market cap at $1.7 billion on the daily chart | Source: TradingView.com
Featured image from Pexels, Chart: TradingView.com
(The analysis represents the author’s personal views and should not be construed as investment advice).