ApeCoin (APE) Shows Signs Of Recovery, But Mini-Rally Could Be Short-Lived

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ApeCoin has a long and complicated history. When it was first released on March 17th, it was immediately put to the test by the same market forces that were responsible for the general crypto market downturn.

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The coin price broke above the resistance of the head and shoulders pattern to reach a new all-time high of $5.63. This could portend an imminent uptrend, but technical signals are pointing in the opposite direction.

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Overall, both the bulls and the bears have managed to make slight gains in APE Coin, turning the overall trend neutral. There is also a double bottom pattern on the coin. This pattern can predict the continuation of the current downward trend.

Apcoin: Possibility of a strong buy signal

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However, this declining trend has not materialized yet. The current APE Coin Mini Rally could be a short-term volatility following the fall that began on 13 September.

Recently there has been a double bottom and single bottom reversal in the price of APE coin. The bearish sentiment among investors can be reversed only if the price is able to sustain the 78.60 per cent Fibonacci level. The result could be a stronger buy signal for market participants.

We anticipate that the price of APE will increase when the crypto market recovers with the broader financial sector. And that is if the cryptocurrency market can ignore impending bad CPI news and interest rate hikes.

The value of alternative cryptocurrencies such as APE Coin is highly correlated with the market cap of Bitcoin. At the time of this writing this coefficient now stands at 0.73. This indicates a high level of correlation between the two currencies.

Short-term exposure: finding support

ApeCoin’s short-term performance is “acceptable”, but only with access to real-time data. At the time of writing, the cryptocurrency is trading above the 78.60 Fibonacci level and is attempting to find support there. Considering the coin’s track record, this may just be a momentary win.

The APE coin’s value will increase as a result of a general uptick in the economy and financial markets. Important support can be found between $4.24 and $4.60. The fall in prices and the rise in price that the coin has observed has been created and sustained by these two factors.

The $4.60 support level is where the price can find a floor before falling towards the $4.24 area. However, if the bears also break the $4.24 support, the recovery of the APE coin could fail.

However, recent market data indicates that the APE currency is showing signs of recovery. On the 1-hour time frame, the coin has firmly established above the 78.60 Fibonacci level. As cost levels come down, the confidence of dealers and investors can increase.

APE total market cap at $1.7 billion on the daily chart | Source: TradingView.com

Featured image from Pexels, Chart: TradingView.com

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



Credit : www.newsbtc.com

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