APE Chart Hints 9.2% Relief Rally Before The Next Fall; Time To Exit?

The Apecoin price resonated inside a broadening channel pattern from Mid June to August. In theory, this bearish continuation accelerates the selling pressure over the coin and triggers a significant downfall. Thus, the recent APE price breakdown from this pattern has begun a potential correction.

Key points From APE Analysis: 

• The post-retest fall may plunge the price by 40%
• The APE price reclaims the $5.4 level
• The intraday trading volume in Apecoin is $391.2 Million, indicating a 39% gain

Source- Tradingview

The short-term recovery in the APE/USDT pair formed a local top at the $7.85 mark. However, the coin price took a complete V-shaped reversal from this resistance as the crypto market witnessed a sudden increase in selling pressure around Mid August.

Thus, the negative sentiment growing around the market bolsters the very nature of the channel pattern. On August 18th, the bearish breakdown from the support trendline activated the bearish pattern and signaled the continuation of the prevailing downtrend.

In addition, the breakdown rally breached even a horizontal support level of $5.4, offering an extra edge for short sellers. However, the APE price has taken a later shift over the past four days wavering below the $5.4 flipped resistance.

During this consolidation, the daily candle showed multiple lower price rejection candles indicating the demand pressure from below. If the buying pressure persists, the altcoin may surpass the $5.4 level and test the breached trendline as potential resistance.

The bears will most likely sabotage the bullish momentum at this resistance and accelerate the selling pressure for a significant downfall. Thus, if the price action shows an evident signal for losing bullish momentum at the $6 level, the trade believing in potential downfall could get a good exit opportunity.

Anyhow, in response to this bearish pattern, the APE price may drop to $3.23 bottom support.

On a contrary note, during the retest phase, the breakout above the $6 and rising trendline will invalidate the bearish thesis and offer a recovery opportunity to surpass the $7.58 mark.

Technical Indicator

EMAs: the coin price reversal from the 100-day EMA reflects the overall trend is still bearish. Moreover, the dynamic support of the 20-day EMA is flipped to a possible resistance.

RSI indicator: the daily-RSI slope reverted from the oversold region projects the prices have stabilized from the previous downfall. Furthermore, the indicator value below 50% suggests a negative among traders.

• Resistance levels: $5.4 and $6
• Support levels: $4.2 and $3.2