Disclaimer: The results of the analysis below are the author’s sole opinion and should not be considered investment advice
After hitting an all-time high (ATH) at the end of April this year, ApeCoin [APE] It was flat relative to investor expectations. The ensuing drop has kept the alt below the limit of the $7.3 cap for more than three months.
The recent bearish pattern breakout sparked a string of red candles. Price action is now near the immediate demand zone of $4.3-4.7.
The near-term outlook favors sellers with the EMA ribbon opting bearish. But a bearish flag breakout could find easing within the aforementioned support range. At press time, APE was trading at $4.785, down 7.38% over the past 24 hours.
APE daily chart
Source: TradingView, APE/USDT
APE has been on a gradual upward trend after its ATH plunged by more than 88%. From its all-time low on June 15, the coin has struggled to find a higher footing.
The recent recovery efforts translated into a rising wedge on the daily time frame. But a pattern breakout created a bearish flag setup as the $7.3 level posed a barrier. The resulting bearish crossover of the 20/50 EMA reignited the bearish pressure.
On top of that, the altcoin’s 24-hour trading volume is up more than 74% while losing daily. The reading suggested a strong bear market move. But totals showed a downward trend last week.
A close below $4.7 could send the alt down further.In this case, buyers will seek re-enter market in $4.1-$4.3 range. but a possible rebound Currency from immediate demand zone may help coin retest $5.1 cap.
Fundamental
Source: TradingView, APE/USDT
The Relative Strength Index (RSI) teetered on the edge of an oversold mark for more than a week. A rebound in the region could open the way for a near-term recovery.
Additionally, the Moving Average Convergence Divergence (MACD) failed to improve its reading by continuing to reflect a bearish edge. Buyers should look for a potential bullish crossover before going long. Nonetheless, higher troughs in on-balance volume (OBV) diverged bullishly with price action and kept hopes of a recovery alive.
in conclusion
APE is likely to stick to its current stance given the fall of the bearish flag near the demand zone and the easing of the bullish divergence in OBV. But high volumes and a south-facing EMA ribbon continue to paint a long-term bearish advantage. Potential targets will be the same as above.
Finally, investors/traders should consider broader market sentiment and on-chain developments to make profitable moves.
