Can ApeCoin catch a break with this bullish divergence and rally 25%
|- ApeCoin price has crashed 49% over the past day and reached its listing price at roughly $5.11.
- The bullish divergence on the four-hour chart indicates that APE could rally 25% and tag $7.89.
- A breakdown of the $5.11 support level will invalidate the optimistic narrative and trigger a further sell-off.
ApeCoin price shows an affinity to spike higher after this bullish technical flashed on the four-hour chart. Interested investors could seize this opportunity for a quick profit as APE prepares to retest the immediate resistance barrier.
ApeCoin price at an inflection point
ApeCoin price flipped below $9.64, a long-standing support level, on May 9. This development followed by a failed attempt to overcome the aforementioned hurdle resulted in a 50% crash.
As a result, ApeCoin price dropped to $5.11, which is just above its listing price of $5.02. Regardless, APE set up two lower lows on May 11 and May 12, while the Relative Strength Index (RSI) formed higher lows, indicating the formation of a bullish divergence.
This technical formation states that the bullish momentum is rising while the price is declining. The setup often results in a spike in the underlying asset’s market value, which at the time of writing, is already underway.
So far, ApeCoin price has rallied 23% from the May 11 swing low at $5.11 and shows promise of a further ascent. Investors can expect APE to trigger another 25% rise to $7.89 as a result of the bullish divergence.
However, care should be advised as a collapse in Bitcoin price could ruin this setup.
APE/USDT 4-hour chart
Despite the gloomy outlook of the markets and ApeCoin price, whales holding between 100,000 and 1,000,000 APE tokens are accumulating. The number of these wallets spiked from 81 to 105 between May 1 and 12.
This 29.6% uptick indicates that these high networth buyers are expecting a massive recovery from APE when the markets turn around.
APE supply distribution
If the ApeCoin price breaks down the $5.11 support level, it will create a new low and invalidate the short-term bullish narrative. In such a case, APE could head low and set new all-time lows below $5.00.
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