Three reasons why ApeCoin price could rally 30%
|- ApeCoin price has breached two distinct resistance levels in its three-week journey.
- APE bulls have managed to overcome the 200-day EMA, denoting a major pivot in the narrative.
- A breakdown of the $4.37 support level will invalidate the bullish thesis for APE.
ApeCoin price has shown incredible momentum over the last three weeks, which has pushed it beyond three major hurdles. This development will play a crucial role in the price action of APE in the coming weeks.
ApeCoin price ready to make a move
ApeCoin price has inflated by 58% in the last three weeks from $3.61 to $5.72 in the last three weeks. In its journey to the upside, APE has overcome three major hurdles -
- A declining trend line connecting the lower highs formed for the last eight months. This hurdle has served as a blockade preventing it from heading higher, but the recent move has sliced through it.
- The horizontal level at $5.13 served as a support and resistance level for the last eight months but has primarily been for the last 100 days. The recent move has also shattered this blockade.
- Lastly, the 50-day, 100-day and 200-day Exponential Moving Averages were also overcome due to its 58% rally.
Hence, these three reasons are critical for investors looking to invest in APE. Market participants can expect a retest of $5.13 or sweep below this level as buyers and bulls hash it out. But if this support structure holds, APE will likely trigger a run-up to $7.46, which is the midpoint of the $5.13 to $9.78 range formed in mid-May 2022.
This run-up would constitute a 30% ascent for ApeCoin price and is likely where the short-term local top would form.
APE/USDT 1-day chart
While the bullish outlook is compelling, if Bitcoin price takes a U-turn, the entire market would do the same. In such a case, if ApeCoin price flips the $5.13 support level into a hurdle, it would indicate a slowdown in momentum and should caution investors.
A daily candlestick close below the EMA confluence at $4.37 will invalidate the bullish thesis by creating a lower low. This development would tank APE down to $3.52.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.