Three reasons why ApeCoin price could rally 30%

ApeCoin price has breached two distinct resistance levels in its three-week journey.
APE bulls have managed to overcome the 200-day EMA, denoting a major pivot in the narrative.
A breakdown of the $4.37 support level will invalidate the bullish thesis for APE.

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 -

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.
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.
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.

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