APE traders can go long if it retests this support. Here’s why…

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

• ApeCoin has a bullish short-term structure
• The liquidation levels showed where bulls could look to enter long positions and where they could book profits

ApeCoin [APE] has trended southward on the charts since May 2022. There were brief rallies that lasted weeks. However, the long-term investors have never been convincingly resurgent in the market in a long time. Another such bounce could be imminent. This downtrend would likely be spurred on by the token unlock that is scheduled for later in October.

Read ApeCoin’s [APE] Price Prediction 2023-24

A recent ApeCoin technical analysis by AMBCrypto noted that the $1.09 was a level to watch out for. It had been resistance, but the past 24 hours saw prices climb back above it. Can the bulls keep this move going, and how high can they reach?

The H4 momentum was bullish but the higher timeframe trend must not be forgotten

Source: APE/USDT on TradingView

On the 12-hour chart, the move above $1.11 on Monday (16 October) showed bullish intent. This was in contrast to the strong downtrend on the daily and weekly charts. Hence we must consider the possibility that APE could climb higher in search of liquidity before another slump rather than beginning a true rally.

The four-hour chart above showed a bullish structure from the price action. The Relative Strength Index (RSI) was above neutral 50 and indicated upward momentum was strong. Additionally, the On-Balance Volume (OBV) has also crept higher over the past ten days.

To the south, the $1.06 region has been important support since mid-September, with last week’s slump to $1.01 notwithstanding.

The liquidation levels presented an interesting scenario for APE

Source: Hyblock

The Cumulative Liquidation Levels Delta showed longs were set to suffer more upon a contrary price movement. Yet it wasn’t large enough to warrant expectations of immediate volatility. Having said that, there was close to $2 million worth of long liquidations just below $1.08.

Therefore traders can look to go long in the $1.05-$1.08 region targeting $1.13 and $1.17. This idea would be invalidated should APE drop below $1.035-$1.04.

Source: Coinalyze

The large jump in the OI over the past 24 hours drew attention to ApeCoin speculator sentiment. They exhibited bullish conviction, but the spot market only ticked higher slightly. This indicated that the bullish momentum was not shared by spot APE buyers.

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Therefore, a long trade at the aforementioned $1.06 level could see a futures-driven rally toward the next significant liquidation level at $1.17. Yet, a rally backed by genuine demand did not appear to be on the horizon for ApeCoin this week.