Three reasons why ApeCoin price could rally 30%

ApeCoin price has shown incredible momentum over the last three weeks, which has pushed it beyond three major hurdles. This development will play a crucial role in the price action of APE in the coming weeks.

ApeCoin price ready to make a move

ApeCoin price has inflated by 58% in the last three weeks from $3.61 to $5.72 in the last three weeks. In its journey to the upside, APE has overcome three major hurdles -

1. A declining trend line connecting the lower highs formed for the last eight months. This hurdle has served as a blockade preventing it from heading higher, but the recent move has sliced through it.
2. The horizontal level at $5.13 served as a support and resistance level for the last eight months but has primarily been for the last 100 days. The recent move has also shattered this blockade. 
3. Lastly, the 50-day, 100-day and 200-day Exponential Moving Averages were also overcome due to its 58% rally.

Hence, these three reasons are critical for investors looking to invest in APE. Market participants can expect a retest of $5.13 or sweep below this level as buyers and bulls hash it out. But if this support structure holds, APE will likely trigger a run-up to $7.46, which is the midpoint of the $5.13 to $9.78 range formed in mid-May 2022.

This run-up would constitute a 30% ascent for ApeCoin price and is likely where the short-term local top would form.

APE/USDT 1-day chart

While the bullish outlook is compelling, if Bitcoin price takes a U-turn, the entire market would do the same. In such a case, if ApeCoin price flips the $5.13 support level into a hurdle, it would indicate a slowdown in momentum and should caution investors.

A daily candlestick close below the EMA confluence at $4.37 will invalidate the bullish thesis by creating a lower low. This development would tank APE down to $3.52.