ApeCoin price has professional traders sharpening their knives, here's why
- ApeCoin price is coiling inside a diagonal wedge.
- APE price volume is tapering as the price goes up.
- Invalidation of the uptrend is a touch at $18.41.
ApeCoin price is still headed north, but the technicals should be analyzed thoroughly to maximize potential profit.
ApeCoin price is on a dangerous path to $23
ApeCoin price is currently trading at $19,80. Traders should expect a slight pull back into the $19.40 zone before an additional run-up towards $23. This trade should be managed manually with keen attention to the price action as the APE price coils inside a wedging diagonal pattern. The classic chart pattern is signaling an end of the uptrend will soon arrive. It is common for wedges to overshoot the price, which gives further confluence to the $23 target,
ApeCoin price is in wave 3 of wave 5 following the triangle breakout. The volume profile pattern drops as the price ascends, giving further confluence to the ApeCoin price action. Traders are likely already trying to short the APE price as the pattern continues to coil into wedges on smaller time frames. Because wave 1 and wave 3 have not extended, it is fair to assume that one more price spike will occur as wave 5. Therefore, traders should look to the short APE price after one more impulse wave with a potential overshoot outside the wedge. Until then, stay with the uptrend.
APE/USDT 4-Hour Chart
Invalidation of the bullish scenario is a touch at $18.41. Wave 5 of 3 could be already in, setting up a short to $13.74, resulting in a 30% drop from the current ApeCoin price.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
