ApeCoin Price Prediction: Is APE setting up a smart money trap?

ApeCoin price rallied by 10% on January 25.
The Relative Strength Index shows the uptrend is weakening.
A breach of $5.29 could induce a much stronger decline.

ApeCoin Price is in question as the uptrend move is not delivering the same amount of strength witnessed in the trend prior. Traders should be on the lookout as a sudden dip could be the start of a much larger decline.

ApeCoin setting up a trap?

ApeCoin price has risen by 10% on the day as the bulls are aiming to solidify a daily close and candlestick above the $6 price zone. The Ethereum-based NFT token shows promise that the uptrend can continue but keen attention should be applied to risk management.

APE price currently auctions at $6.02. Earlier in the week, the APE price showed a bearish signal on the Relative strength Index (RSI), printing a strong bearish divergence at a key level. Despite the 10% spike, the RSI remains suppressed beneath 70. This significant reading merits the need for caution moving forward. Traders may want to call it quits if the daily low at $5.29 is pierced.

A second attempt at the daily low could catalyze a challenge of bulls' lower liquidity levels. Iey levels of interest would be the 21-day simple moving average at $4.89 as well as last week's low at $4.49.

APE/USDT 1-day chart

Invalidation of the bearish thesis could arise from a spike above the September high at $6.40. The breach could see further upside to challenge the $7 liquidity zone. ApeCoin price would rise by 17% if the bulls were persistent.

Share: Cryptos feed

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram