ApeCoin price rally inhibited by selling pressure from 625.65 million addresses holding $1.28 billion in APE

• ApeCoin price is bullish on the 4-hour timeframe, coiling up for a 5% rally to breach the $2.140 resistance level.
• The rally is delayed, with addresses holding up to 625.65 million APE tokens worth $1.28 billion, incurring losses.
• A value slump may be imminent as these holders look to sell, with possible turnaround points between the $1.956 and $1.934 range.
• Invalidation of this bearish outlook will occur upon a 4-hour candlestick close above the $2.140 level.

ApeCoin (APE) price remains bullish, edging north while consolidating within a bullish technical formation. While the price strength is strong, the altcoin faces resistance from a huge cohort of traders looking to sell after breaking even on their positions after market prices approach their average costs.

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ApeCoin price could succumb to selling pressure

Despite the recent slump, the ApeCoin (APE) price remains biased to the upside. The token continues to endure volatility, oscillating between two boundaries so that the price action has formed a rising wedge pattern.

A rising wedge pattern is a reversal of a continuation pattern depending on volume. It often manifests during bear markets, appearing when the price moves upward with pivot highs and lows to converge at a single point. When such price action is accompanied by increasing volume, it may signal a continuation of the bullish trend.

After a rejection from the upper boundary of the chart pattern, ApeCoin price is pushing north once again, trying to activate a bullish breakout. APE could break past the $2.140 resistance level and extend north. Such a move would constitute a 5% climb.

APE/USDT 4-hour chart

However, in the face of intense selling pressure, ApeCoin price may not continue north just yet, with on-chain data from IntoTheBlock’s Global In/Out of Money metric attributing this to selling pressure from 625.65 million addresses that hold a total of $1.28 billion worth of APE.

ApeCoin GIOM

Based on the chart above, only 35.40% of APE holders are making a profit (in the money), while 2.04% are breaking even (at the money). However, the lion’s share of traders (62.56%) is incurring losses (out of the money).

The selling pressure, therefore, comes as the 62.56%, holding 625.65 million APE tokens worth around $1.28 billion, look to sell as the market prices approach their average costs, and they are almost breaking even on their positions.

The ensuing selling pressure could send ApeCoin price down to test the 200-day Exponential Moving Average (EMA) support at $1.981. If this level fails to hold as support, APE could descend further to tag the 50-day EMA at $1.956 or, in the dire case, the 100-day EMA at $1.934.

Nevertheless, invalidation of the current bullish outlook would only happen once ApeCoin price breaks below the lower boundary of the rising wedge pattern and records a 4-hour candlestick close below the $1.802 support. Such a move would constitute a 10% drop from current levels.

The Relative Strength Index (RSI) is heading south while the histograms of the Awesome Oscillator (AO) indicator are flashing red and losing volume, thus bearish. With both momentum indicators favoring the bears, ApeCoin price could continue falling.

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