- ApeCoin price shows a reclaim of the range low at $5.13, indicating a resurgence of buyers.
- A bounce off this level could kick-start a massive rally that could propel APE to $11.28.
- However, a daily candlestick close below September 16 swing low at $4.55 will invalidate the bullish thesis.
ApeCoin price has been consolidating in a tight range for roughly five months and is currently attempting to get out. A successful recovery will happen if the bullish momentum is sufficient and the market conditions are right.
ApeCoin price prepares for an explosive rally
ApeCoin price has spent most of the five months trading below the $5.13 to $10.25 range. The recent surge in bullish momentum has caused APE to rally 6.5% over the last 30 hours and there are signs that it will continue to do so.
The recovery above $5.13 is a significant step, and the next major hurdle will be the range’s midpoint at $7.69. Coincidently, the volume profile shows that there is a low volume node, aka a gap in trading volume at this level, making a mean reversion play up to it more likely.
Beyond this, the volume profile indicator shows massive gaps or inefficiencies up to $11.28, making it easier for price to rally up to that level. A flip of the $7.69 hurdle will allow ApeCoin price to retest the range high at $11.28, bringing the total gain to 97% from the current position.
How high ApeCoin goes depends on whether the momentum is strong enough, if it is, investors could see ApeCoin price wick up to $11.28.
APE/USDT 1-day chart
Regardless of the bullish narrative above, there is a risk ApeCoin price could easily undo the recent recovery and retest the range low at $5.13. A breakdown of this level will be the first sign of weakness from bulls.
If this trend continues and ApeCoin price produces a daily candlestick close below the September 16 swing low at $4.55, it will create a lower low and invalidate the bullish thesis. This development could see APE drop to the next stable support level at $3.42.
Note:
The video attached below talks about Bitcoin price and its potential outlook, however, this is still relevant as it is likely to influence ApeCoin price.
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