ApeCoin price is likely to fall flat towards $4 for these reasons
|- ApeCoin price shows resistance under two crossing moving averages.
- APE price shows a tapering look on the Volume Profile pattern but breached extremely oversold territories on the Relative Strength Index.
- Invalidation of the bearish trend remains at $6.15.
ApeCoin price is in a tough spot for bulls in the market. A countertrend scalp would be more favorable after a breach of the lows.
ApeCoin price is in a jam
Apecoin is currently auctioning just below the mid $5.00 region that failed to act as support during September. A bearish cross of the 8- and 21-simple moving averages has occurred while APE price hovers below.
ApeCoin price auctions at $5.28, The volume profile indicator shows a tapered, which suggests the downtrend is weakening. Still, the Relative Strength Index fell into extremely bearish territory upon the recent $.00 swing lows. Placing an early entry for this reason is ill-advised.
APE/USDT 6-Hour Chart
Bulls should remain cautious around the current price level as the crossing moving averages could catalyze a sweep of the lows event targeting the $4.00 liquidity level. Such a decline would result in a 25% decrease from the current market value. A better opportunity to go long could present itself if the $4.00 zone is breached in the coming days.
Invalidation of the bearish thesis is a breach above the $6.50 resistance level. If this level is tagged, a potential rally towards the August high at $7.50 stands a fair chance of occurring. Such a move would result in a 42% increase from the current ApeCoin price.
In the following video, our analysts deep dive into the price action of Apecoin, analyzing key levels of interest in the market. -FXStreet Team
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