Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice.
ApeCoin’s Comprehensive Pulldown [APE] All-time high (ATH) finally saw a rebuttal to buying from its all-time low in the $3.1 zone. Recent gains have helped the alt find a position above the 200 EMA (green) after more than two months.
While the current price is seeing a strong decline in the $6.6 region, APE could see a short-term pullback before picking itself up. The traders/investors should look for a break below the pattern in the coming sessions. At the time of writing, APE was trading at $6.6177.
APE 4 Hour Chart
Since hitting its lifetime milestone around the $27.6 level, APE has recorded consistently lower highs in recent weeks.
A retracement of over 88% from April’s highs brought APE down to find newer lows. As a result, it hit its all-time low of $3.0661 on June 15. The last month marked a gradual recovery on the chart.
The buyers found renewed pressure and claimed the previous losses by inflicting an ROI of over 105% since then. This recovery brought in two rising wedges that helped APE move above the 200 EMA.
The golden cross on the EMAs has only reaffirmed purchasing power in recent weeks. The EMA ribbons were still looking north as they mixed with the bullish narrative.
An inability to close above $6.6 could lead to reversal trends in the near term. A reversal from the $6.6-$6.9 range could cause a break below the rising wedge.
In this case, APE could see a pullback towards the $5.6-$5.8 range before a plausible buy comeback. If the sellers dwindle, the buyers can slow this downturn.
The Relative Strength Index (RSI) has been floating in the bullish region as it bounced back from the overbought mark. A retracement to the midline could cause further sluggish behavior.
However, the lower spikes on the CMF and RSI confirmed a bearish divergence with the price. Also, the AO continued to mark lower peaks. Any close below its equilibrium could indicate a bearish twin peak setup in the 4 hour time frame.
Given the rising wedge, which is approaching the $6.6 resistance alongside bearish divergences on the CMF and RSI, APE could see a pullback in the near term. The possible targets would remain the same as discussed.
However, investors/traders need to consider broader market sentiment and developments in the chain to make a profitable move. This analysis would be necessary to identify any bearish invalidations.
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