ApeCoin’s May 22nd release has been met with many challenges. Its prices have been steadily declining since its release on May 22. 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.
Is it possible for the bearish structure to continue to grow?
APE trades at $4.72 as of Wednesday, down 7.6 per cent in 24 hours. Data from Coingecko shows.
Chart by TradingView
Help for current price range
The current price range for this coin is $4.3145-$6.4290. This $4.3145 price range supports the current trading range. Bulls tried to overcome the $7 resistance in August by using the second method.
Recent bearish XABCD patterns have been established by the token. This pattern is often called 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%. However, investors are trying to recover from this downturn, and the market currently trades in green.
Hope Or False Optimism?
This trend reversal in the token’s price isn’t unusual. Bullish reversals were evident in the August price surge. The token had declined between May and June. Market conditions favorable to this kind of reversal are required.
One of the two possible outcomes to the $5 Support Line breach is:
(1) Investors can receive sell signals from it.
(2) It can offer token investors the opportunity to purchase dips
A new analysis shows that the supply of exchange metrics is at its highest in three years, which strongly suggests that APE shareholders are looking to sell.
Unimpressive, the CMF figure also isn’t impressive. The bears hold complete market control at the time this article was written. Stoch RSI currently lies in the oversold area, indicating that ApeCoin owners are selling actively.
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.
Featured Image from Capital.com Source: TradingView.com| Featured image from Capital.com, Source: TradingView.com Disclaimer: This analysis is the author's opinion and should not necessarily be considered investment advice.