Analysis
APE bulls hold off the bears for now, and that means…
APE’s OBV has trended higher since the 8th of January, reinforcing the bullish bias.
- APE saw heightened volatility in recent days.
- This saw bearish sentiment in the Futures market, but the OBV has trended higher through it.
ApeCoin [APE] fell by 12.2% on the 18th of January. Despite the losses, the market structure was unbroken. The fall to $1.31 was swiftly bought up but is that a reliable sign of a bullish rebound?
This drop in prices came after a token unlock on the 17th of January. Bitcoin [BTC]
also fell from $42.9k to $40.6k, giving APE sellers more reason to sell their holdings.The market structure hinted at APE’s next direction
On the 17th of January, APE closed a daily trading session above $1.53, flipping the market structure bullishly. The large drop in prices that came a day after was not enough to break the bullish structure.
The previous higher low was highlighted by the red line and stood at $1.37. APE fell to $1.31, but did not close the day’s session below $1.37. The past three days of trading saw the prices rise slightly to $1.4 at press time.
Source: APE/USDT on TradingView
Despite the bullish market structure on the 1-day chart, the RSI was below neutral 50. Its reading of 43 highlighted downward momentum was stronger. Conversely, the OBV has trended higher since the 8th of January.
The OBV underlined buying volume was greater in the past ten days, which agrees with the bullish market structure break. Hence, if $1.37 isn’t breached, APE is likely to rise to the next resistance at $1.57.
Evidence from the lower timeframes encouraged the sellers
Source: Coinalyze
Realistic or not, here’s APE’s market cap in BTC’s terms
After the 18th of January, the spot CVD took a huge dive, wiping out the gains from the previous day. At press time, the downtrend continued. Moreover, the Open Interest has also slowly declined.
Together, they pointed toward bearish short-term market sentiment. This would need to change if the bulls are hoping to drive a rally to $1.57 and higher.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
