Just as expected, Apecoin sustained November’s recovery up to $4.48, retested a crucial resistance, and dropped due to rejection. The break and retest successfully played out. It now primes for a fresh decrease.
The bulls are exhausted, and it appears the bears are slowly stepping back into the market. After Apecoin found support in the past month, it made a U-turn and closed the month on a bearish following a break and retest pattern. The market is set for another meltdown.
It is trading below the crucial resistance level of $4.2, where the orange demand-turned-supply area lies. A massive sell-off is expected in the coming weeks.
Another angle to this setup is the lower low and lower high formation, which nicely respects the dynamic resistance trend line forming on the daily chart. A new lower low is in play.
However, if the price fails to fall and Apecoin climbs above the descending resistance line, we should expect a quick change in trend to bullish as huge gains lies ahead. Even though it is looking bullish on the daily chart, the long bearish trajectory remains valid.
The asset still holds a 12.6% gain over the past week. This gain is likely to wash away as soon as the price starts to drop significantly. It is changing hands at around $3.96 at press time.
APE Price Analysis (APEUSDT): Daily Chart
The big picture of the potential bearish action is becoming clearer in the lower time frame.
Considering the fresh lower low, the closest support level, for now, is $3.52. After this, the next support level to keep an eye on is $3.1 and potentially $2.62 – the November support. We can consider $2 and $1.5 as the next levels to keep in mind if these support breaks.
In case of a positive move, the $4.2 resistance level remains an important level for a breakout. The following resistance to keep in mind is $4.73. There’s also a resistance level at $5.25. A push above this resistance would trigger huge buying pressure in the market.
Key Resistance Levels: $4.2, $4.73, $5.25
Key Support Levels: $3.52, $3.1, $2.62
- Spot Price: $3.96
- Trend: Bullish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!
Image Source: photogonzo/123RF