Why traders must approach ApeCoin price with caution

ApeCoin price rejected off a strong Fibonacci level.
APE price triangle consolidation could be over.
Invalidation of the bearish trade setup is a close above $15.50.

ApeCoin price is one to watch as a 60% rally could commence in either direction. The bullish scenario may be too good to be true.

ApeCoin price looks like a trap

ApeCoin price could be showing early evidence of an end to the consolidative triangle. The APE price has failed to establish a close above the 61.8% retracement level. The sell-off at $13.40 also lines up in sellers’ territory on the 8-hour chart. Traders could be reading the current APE price as a bullish breach of a trendline only to be trapped within a larger bearish trap.

APE price could be fooling many traders by reading the current price action as bullish. Ultimately, ApeCoin price could continue sideways, so the safest entry for the bears will be a close below $10.60.

If this were to occur, the APE price could easily fall to $7 and potentially $4.00. It is worth noting that the volume profile shows no evidence to support who is in control of the current consolidation. Thus, being an early trader is very risky.

APE/USDT 8-Hour Chart

Smart money is likely to place their stop loss above the Wave C at $15.50. A breach of this level is the first invalidation of the bearish scenario. If this bullish event occurs, investors can expect ApeCoin price to surge towards $18. and $20 resulting in a 60% increase from the current APE price.

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.