Over the past two months, the Ape price showcased a sustained recovery in the daily chart. This bullish rally was led by a rising parallel channel pattern and doubled the Ape Coin’s market value from its November 2022 low. However, in theory, this pattern is known as a bearish continuation pattern, intensifying the selling pressure upon the breakdown of the support trendline. Having said that, the buyers gave an upside breakout from the patterns trendline but is still struggling to offer a follow-up rally.
- The multiple rejection candles at $6 indicate the sellers continue to defend this level
- A bullish crossover between the 50-and-100-day EMA could encourage the resumption of a bullish recovery
- The intraday trading volume in Apecoin is $173. Million, indicating a 26% gain
In a strong bullish scenario, an upside breakout from the patterns resistance trendline will undermine this bearish thesis and increase the buying pressure. There, on January 21st, Apecoin price gave a high momentum breakout from the pattern’s resistance trendline, offering an entry opportunity for sidelined traders. This breakout was supposed to trigger a significant rally, but instead, the coin price is moving sideways, struggling to breach $6.
The coin currently trades at the $5.84 mark and shows several higher price rejection candles at $6 in the last five days. These rejection candles signal the exhausted bullish moment and the ability of buyers to sustain higher prices.
Also Read: Top 10 DeFi Lending Platforms In 2023
Thus, if the selling pressure persists, the coin price will likely break the rising trendline and validate the prior breakout as a fakeout or bull trap. This breakdown will encourage longer corrections and may plunge the price back to $4.47.
Conversely, the traders looking for a long entry opportunity should wait for a daily candle closing above $6.
RSI: despite a rising price action, the RSI slope showing a downfall indicates a bearish divergence. This divergence with price action showcase and additional confirmation for coming correction.
EMAs: the recently reclaimed 200-day EMA moving the $5.2 mark increases the support power of this level.
Apecoin Intraday Price Levels
- Spot price: $5.8
- Trend: Bullish
- Volatility: High
- Resistance level- $6 and $7.64
- Support level- $5.2 and $3.8
The post Traders Should Beware Of This Bull Trap If They Are Buying Apecoin appeared first on CoinGape.
- Mobile app
- Telegram Channel
- Telegram Group
- Binance Referral Link
- Bitmex Referral Link
- (Recommended For Leverage) ByBit Referral Link
- Buy Ledger Nano at discounted price
- Buy Cool Wallets at discounted price
Don't forget to share your review/suggestions for the android app.
All In One Crypto App is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by All In One Crypto App or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risks