Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.
Since reaching its all-time high (ATH) on April 28, 2022, the ApeCoin . has [APE] selling spree has held the alt below the daily 20 EMA (red) and the 50 EMA (cyan). The recent series of higher dips and peaks has seen a significant recovery. But the bears continued to show a strong rejection of higher prices.
As a bearish flag setup flares up on the chart, sellers could extend the bearish phase in the coming sessions. At the time of writing, APE was trading at $4.4223, up 4.12% in the past 24 hours.
APE daily chart
Since APE reversed from the $27.6 resistance, APE has recorded consistently lower highs for the past two months. After recording a Down 88% from April highs, APE fell, finding an all-time low of $3.0661 on June 15. Post this, the alt marked a rather resilient recovery on the map.
For over two weeks, APE has seen a bearish flag and pole in the daily time frame. With the 20 EMA limiting buying efforts, a convincing close under the current pattern could expose the alt to downside risk.
To top it off, the volume trend declined during the formation of the flag pattern. This pattern generally performs well in such a declining volume trend.
An ongoing close under the flag could aid bearish efforts as they retest the USD 3.3 support. Post that buyers would strive to dissuade the sellers from finding newer lows. An ongoing pattern oscillation would likely lead to a $5.6 zone reversal.
The Relative Strength Index (RSI) has been floating in the bearish zone for two months now. A break below the 42 level could help selling efforts retest the $3.3 level.
Furthermore, the Chaikin Money Flow (CMF) mixed with the bearish outlook. Investors/traders should watch out for a possible break above this level to detect any bearish nullifications.
Looking at the bearish flag and pole setup next to the price action falling below the 20/50 EMA, APE could see a pattern breakout. The objectives would remain the same as above.
Finally, investors/traders need to consider broader market sentiment and developments in the chain to make a profitable move.
This post ApeCoin [APE] traders looking to go short can make the most of this pattern
was published first on https://ambcrypto.com/apecoin-ape-traders-willing-to-go-short-can-make-the-most-of-this-pattern/