Assessing ApeCoin's chances of a 60% rally in the bear market

ApeCoin price has veered off its bull pennant formation but still promises a 30% ascent.
From a conservative standpoint, investors can expect a recovery rally to the $10.68 hurdle.
A decisive close below $7.19 will create a lower low and invalidate the bullish thesis.

ApeCoin price was traversing a bullish continuation pattern after the recent market crash. However, the coin moved off track and has not been able to rouse the bulls for a run-up so far.

ApeCoin price coils up

ApeCoin price formed a bull pennant after a 70% crash in roughly a week. The subsequent 76% surge between May 12 and 13 created the “flagpole,” while the consolidation that followed in the form of lower highs and higher lows that followed created the “pennant.”

This continuation pattern signals a 43% upswing to $12.80, determined by measuring the flag pole’s height and adding to the breakout point at $8.90.

Despite the bullish intonations of this setup, APE broke down from the pennant and has been coiling up around the $8.14 barrier. A recovery above this level followed by a resurgence of buyers would trigger a 30% ascent to the first hurdle at $10.68.

In a highly bullish case, this move could extend to the forecasted target at $12.80, constituting a 63% gain.

APE/USDT 2-hour chart

Supporting this uptrend for ApeCoin price is the supply distribution chart, which shows that whales holding 100,000 to 1,000,000 tokens have increased their holdings from 81 to 110 since May 2.

This 35% spike indicates that institutional investors are interested in APE tokens at the current price levels.

APE supply distribution

Regardless of the optimism, a downward breakout has invalidated the bull pennant. Additionally, a decisive move that produces a lower low below $7.19 will invalidate the bullish thesis for ApeCoin price and trigger a crash to $5.00.

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.