ApeCoin has a long and complex history. When it was first released on March 17, it was immediately tested by the same market forces responsible for the general slump in the cryptocurrency market.
The currency price breached the resistance of the head and shoulders pattern, and rose to a new all-time high at $5.63. This may portend an imminent recovery, but technical signals are pointing in the opposite direction.
Overall, both bulls and bears managed to make few gains in APE, keeping the overall trend neutral. There is a double bottom pattern on the coin as well. This pattern can predict the continuation of the current downtrend.
ApeCoin: Strong Buy Signals Likely
However, this downward trend has not yet materialized. The current mini rally of the APE coin may be a short-lived boom in the wake of the decline that started on September 13th.
There have been double bottoms and single bottom reversals in the APE price lately. The bearish sentiment among investors can only be reversed if the price is able to sustain itself at the 78.60 percent Fibonacci level. The result may be stronger buy signals for market participants.
We expect the price of APE to rise when the crypto market recovers along with the broader financial sector. That is if the cryptocurrency market can ignore the impending bad CPI news and interest rate hike.
The value of alternative cryptocurrencies such as the APE coin is closely related to the market price of Bitcoin. This coefficient is now at 0.73 as of this writing. The high degree of correlation between the two currencies indicates this.
Short-Term Performance: Finding Support
ApeCoin’s short-term performance is “acceptable,” but only with access to real-time data. As of this writing, the cryptocurrency is trading above the 78.60 Fibonacci level and trying to find support there. With the coin’s record in mind, this may just be a temporary victory.
The value of the APE coin will rise as a result of the general upswing in the economy and financial markets. Critical aid can be found between $4.24 and $4.60. Both the price decline and price increase experienced by the currency were maintained and sustained by these two factors.
The $4.60 support level is where the price could find a floor before dropping to the $4.24 area. However, the APE retracement may fail if the bears break the $4.24 support level.
However, recent market data indicates that the APE coin is showing signs of recovery. On the 1-hour time frame, the coin has solidly consolidated above the 78.60 fibonacci level. With lower cost levels, traders and investors may gain confidence.
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).