Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation.
The greater timeframe charts for ApeCoin advised that the downtrend may proceed, particularly as a hidden bearish divergence developed. Bitcoin was additionally in a powerful downtrend, and a transfer under $20k can not but be dominated out. Fibonacci extension ranges gave some assist ranges for APE, with the $3 additionally prone to be vital within the days and weeks to come back.
APE- 12-Hour Chart
The Fibonacci retracement and extension ranges (pale yellow) have been plotted for a transfer up from $10.51 to $27.6. This APE transfer occurred again in April. The extension ranges to the draw back gave assist ranges at $5.86 and $1.97.
The $5.86-$6 space additionally had a long-term horizontal assist degree which has since been flipped to resistance. The promoting stress of June noticed APE slide proper previous the $5 and $4 psychological assist ranges. $3.1 got here to the rescue, and a bullish engulfing candle was seen in the newest buying and selling session.
Does this point out a rally upward? Not essentially. On the upper timeframes, even a transfer to $5 could be inadequate to flip the market construction to bullish.
The RSI has been under the impartial 50 line since late April. This signifies the brute energy of the bears in current weeks. At the time of writing, a hidden bearish divergence (orange) materialized. The value made a decrease excessive whereas the RSI climbed greater. The divergence indicated a continuation within the earlier downtrend.
The Awesome Oscillator was additionally under the zero line, to point out momentum was southward. The A/D line additionally descended down the charts. Combined with a CMF worth of -0.26, the promoting stress was proven to be acute.
The extreme sell-side stress meant that recovery was unlikely for ApeCoin simply but. A transfer above $7.5 could be wanted to interrupt the bearish market construction. At press time, the demand to provoke such a recovery was not but seen.