Disclaimer: The following analysis findings are the sole opinions of the author and should not be considered investment advice.
ApeCoin’s extended download [APE] The all-time high (ATH) finally saw a buy rejection from the all-time low in the $3.1 zone. Recent gains have helped the alt to gain a position above the 200 EMA (green) over two months.
With the current price showing a strong rejection in the $6.6 range, APE may see a decline in the near term before picking itself up. Traders/investors should look for a break below the pattern in the coming sessions. At press time, APE was trading at $6.6177.
APE 4-hour chart
Since reaching a lifetime high of $27.6, APE has consistently made lower highs over the past few weeks.
A rebound of more than 88% pushed APE lower to reach new lows from April’s highs. As a result, it hit an all-time low of $3.0661 on June 15. The last month has shown a gradual recovery in the chart.
The buyers got a renewed push and have recovered their previous losses, delivering over 105% ROI since then. This recovery included two rising wedges that helped the APE close above the 200 EMA.
The golden cross on the EMAs has confirmed buying strength in just the past few weeks. EMA ribbons still look north while converging with the momentum narrative.
A failure to close above $6.6 could trigger a reversal trend in the short term. A reversal from the $6.6-$6.9 range could result in a break below the rising wedge.
In this case, APE could see a return to $5.6-$5.8 before a compelling buyback. If the sellers continue to shrink, the buyers may delay this pullback.
The Relative Strength Index (RSI) is hovering in bullish territory, reversing from an overbought signal. Moving back to the center lane may cause additional slow behavior.
However, the lower peaks on the CMF and RSI confirmed a bullish divergence with the price. Also, AO continued to mark lower peaks. Any close below the equilibrium could indicate a bearish twin-top setup in the 4-hour timeframe.
Given the rising wedge, setup nearing $6.6 resistance with bearish divergences on CMF and RSI, APE could see a near-term pullback. Potential targets remain as discussed.
However, investors/traders need to be aware of broader market sentiment and developments on the chain to make profitable moves. This analysis will be very important to identify any bearish faults.