Disclaimer: The results of the analysis below are the author’s sole opinion and should not be considered investment advice.
Since May 1, ApeCoin (APE) has seen active sales with a series of red candles, pulling alt to the $ 5.1 baseline. Then, after resonating with altcoin from another company in the same industry, APE showed a rise after a slight rise in buying pressure.
The current price range offers relatively high liquidity, but APE may continue to be sluggish in the $ 7 to $ 9 range before committing to the trend.
At the time of the press, Altcoin was trading at $ 8.52, up 2.65% in the last 24 hours.
APE 4 hour chart
After the exponential jump after launch, we noticed that cryptocurrencies have oscillated in the range of $ 10 to $ 16 for over a month. An extended Bourlan lined up a series of green candles, achieving an astonishing 155% ROI between April 18th and 28th.
Since reaching the lifetime milestone of $ 27.6, coins have been constantly depreciating and finding new lows. With more than 81% retracement from the April highs, APE found a record low of $ 5.1 on May 11. Currently, the recent recovery from this low is hampered by the Point of Control (POC, red).
When the APE collapsed from a bearish pennant, the bull ensured a low volatility phase, as evidenced by the candlesticks of the short body. Persistent closes below the $ 8.4- $ 7.9 range position a downside alternative towards the $ 6-7.3 range.
To change the current story, the bull needed to overturn the POC along with the resistance provided by the lower bounds of the pitchfork. To do this, you need to buy more and get out of the tight phase.
The Relative Strength Index repeated the presence of low volatility, struggling to snap 52 resistances. Breaks above this level provide alt a very necessary boost to continue the streak of higher troughs on the chart.
However, looking down at Arun upwards (yellow) and crossing Arun downwards (blue), price behavior showed a bearish edge. Therefore, bears aim to push further unless the Bulls exceed the POC to increase purchases.
Considering the short body candlesticks near the POC, alt can see long squeeze in the range of $ 7 to $ 9. If the bulls lose support at $ 20 EMA and $ 7.9, the bears aim to raise the price in the range of $ 7 to $ 7.3 before giving the buyer room.
Finally, investors / traders need to take into account broader market sentiment and chain development in order to make profitable moves.