Why ApeCoin Traders Should Expect The Next Coming Days To Be Tough For APE

Christian Encila

2 years ago

2 mins read

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Since its release on May 22 this year, ApeCoin has experienced lots of challenges. To date, its prices have steadily decreased. The difficulties started in the middle of the May–June crypto market meltdown.

Although ApeCoin was designed to aid the APE project on its Web3 journey, the token’s price has recently broken to a bearish structure after falling below the $5 support level.

If the bearish structure continues to gain ground, does that mean a rally is imminent?

As of this writing, APE is trading at $4.72, down 7.6 percent in the last 24 hours, data from Coingecko show, Wednesday.

Chart: TradingView

Support For Current Price Range

There is a price range of $4.3145-$6.4290 for the coin right now. The aforementioned $4.3145 range is providing support for the current trading range. In August, bulls used the latter method to try to break over the $7 resistance level.

The token has recently established a bearish XABCD pattern, often known as a double triangle. When the token’s price fell below the $5 support level it had been hovering above since the middle of September up to October 10, the bearish pattern intensified.

The market’s reaction to this apparent price break was strongly bearish, and the resulting sell-off drove prices down by 19.43%. The market is currently trading in the green, though, as investors attempt to recover from the recent downturn.

Hope Or False Optimism?

For the token, the present trend reversal is not unprecedented. The price increase from June to August was a bullish reversal after the token declined from May to June. This sort of reversal is possible if market conditions are favorable.

The current $5 support line breach can go one of two ways:

(1) it can convey sell signals to investors, or
(2) it can give an opportunity to buy the dip for token investors

A new analysis indicates that the supply on exchange metric is currently at its highest level in three months, which is a strong indication that APE holders are preparing to sell their shares.

The CMF figure is also unimpressive. At the time of writing, the bears have total market control. Stoch RSI is currently in oversold zone, indicating that ApeCoin holders are actively selling.

The Bollinger band is also contributing to the difficulty of any bullish movement, as the indicator’s middle band is currently acting as dynamic resistance.

APE market cap at $1.4 billion on the daily chart | Featured image from Capital.com, Source: TradingView.com

Disclaimer: The analysis represents the author's personal views and should not be construed as investment advice.

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.