ApeCoin posts losses of 43% in two weeks but a move toward $4 could occur

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Dis­claimer: The infor­ma­tion pre­sent­ed does not con­sti­tute finan­cial, invest­ment, trad­ing, or oth­er types of advice and is sole­ly the writer’s opinion

  • The mar­ket struc­ture was strong­ly bearish
  • Despite that, a bounce in prices could fol­low in the com­ing days

ApeCoin has been in a down­trend since ear­ly August when APE faced rejec­tion from the $7.7 resis­tance lev­el. The $4.17 and $3.18 lev­els have been impor­tant sup­port lev­els since June.


Read ApeCoin’s [APE] price pre­dic­tion 2023–24


Bit­coin did not show much strength on the charts either. APE has a +0.97 cor­re­la­tion with BTC on the price charts, so unless BTC can show strength, ApeCoin might lack the legs to bound upward.

Short-term bullishness can prevail but the $4.45-$4.6 could offer bears an opportunity

ApeCoin posts losses of 43% in two weeks but a move toward $4 could soon occur

Source: APE/USDT on TradingView

On the dai­ly time­frame, ApeCoin formed a bull­ish order block on 6 Sep­tem­ber. Since that time, APE test­ed the $4.17 lev­el of sup­port on two sep­a­rate occa­sions, on 20 Octo­ber and 2 Novem­ber. Along­side the test of $4.61 on 16 Sep­tem­ber, this bull­ish order block saw the price react pos­i­tive­ly. Yet, the bulls couldn’t remain strong forever.

Their resolve broke on 8 Novem­ber when the mag­ni­tude of the FTX cri­sis came to light. Since then, ApeCoin has dropped to form a swing low at $2.618. Hence, the for­mer bull­ish order block can now be con­sid­ered as a bear­ish breaker.

A set of Fibonac­ci retrace­ment lev­els were drawn based on APE’s drop from $5.25 to $2.618. The 61.8% and 78.6% retrace­ment lev­els were at $4.24 and $4.68 respec­tive­ly, which had con­flu­ence with the afore­men­tioned breaker.

The Chaikin Mon­ey Flow (CMF) has con­sis­tent­ly been below ‑0.05 on the dai­ly chart since late Sep­tem­ber to show sig­nif­i­cant cap­i­tal flow out of the sys­tem. The On-Bal­ance Vol­ume (OBV) was in a down­trend, and both indi­ca­tors out­lined the heavy sell­ing pres­sure in the mar­ket. Sim­i­lar­ly, the Rel­a­tive Strength Index (RSI) was beneath neu­tral 50 for the most part in this peri­od to high­light bear­ish momentum.

In the face of this sell­ing, a move upward appeared unlike­ly. Yet, if ApeCoin does man­age to climb to $4.2 or $4.6, bears can be on the look­out for a good R:R short­ing oppor­tu­ni­ty. Inval­i­da­tion of such a short entry would be a dai­ly ses­sion close above  $4.8

Weighted sentiment flips negative after the weak performance of APE in the markets

ApeCoin posts losses of 43% in two weeks but a move toward $4 could soon occur

Source: San­ti­ment

Since ear­ly Novem­ber, the weight­ed sen­ti­ment met­ric dipped into the neg­a­tive ter­ri­to­ry. Social dom­i­nance was also not high for APE, apart from 11 Novem­ber. Toward the end of Octo­ber, the dom­i­nance met­ric had begun to decline.

This showed that the out­look on social media was not too bright for ApeCoin, which was under­stand­able giv­en its price action in the past three weeks. Mean­while, dai­ly active address­es saw a sharp spike recent­ly, but it might not have a bull­ish impli­ca­tion for APE in the near term.

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