October 2, 2022

 

  • ApeCoin dropped approximately 50% from the previous day to explore its listing price of around $5.11.
  • The 4hr chart shows a bullish divergence that hints at a 25% upside to $7.89.
  • Breaching the support barrier at $5.11 will cancel the optimistic thesis and catalyze more declines.

ApeCoin seemed ready to climb higher following a bullish technical formation on its 4hr chart. Interested market participants might seize this opportunity to enjoy quick returns as APE readies for an immediate resistance zone retest.

ApeCoin at Inflection Point

9 May sessions saw ApeCoin’s price plummeting beneath the long-standing support floor of $9.64. This move, plus a failed trial to regain the mentioned zone, triggered a 50% decline for the alternative token.

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Meanwhile, ApeCoin plummeted to $5.11, levels beyond the $5.02 listing price. Nevertheless, the alt formed two lower lows on 11 May and 12 May, as the Relative Strength Index displayed higher lows, suggesting a bullish divergence.

This technical imprint shows bullish strength rising as the price decline. The pattern often leads to surges in the underlying token’s value, which was underway (at this publication).

So far, APE has gained about 23% from the swing low of 11 May, at $5.11. The crypto appears ready to extend upside in the coming sessions/hours. Market players could expect ApeCoin to catalyze another 25% increase to $7.89. That is due to the mentioned bullish divergence.

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Nevertheless, enthusiasts should watch Bitcoin as a sudden crash in the king crypto might ruin APE’s setup.

Though the markets and APE price shows a grim picture, whales with 100K – 1M tokens are buying. These wallets increased to 105 from 81 between 1 May and 12 May. The 29.6% increase shows large buyers expecting a colossal revival from ApeCoin whenever markets shift to the upside.

Meanwhile, increased bearishness in the market will trigger bearish actions in ApeCoin. Breaking beneath the support floor at $5.11 will form a new low, invalidating the near-term optimistic theses. That would see APE stretching lower to print new all-time lows beneath $5.00.

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Bears dominate the crypto world and tighten their teeth amid any slight recovery. It might be fascinating to watch APE’s upcoming trends.

Stay tuned.

Editorial credit: photo_gonzo / shutterstock.com


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