ApeCoin [APE] moves to a higher range, but there’s an issue

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

• APE could oscillate in a higher range if BTC maintains the $23K zone.
• There was a slight accumulation despite a drop in trading volume.

ApeCoin [APE] has been oscillating between $5.386 and $6.000 since 22 January. But it broke above the range and reached $6.410 after BTC surged to $23.8K. 

However, BTC fell below the $23.8K mark, prompting APE to drop. At press time, APE’s value was $6.110 and flashed red, indicating that bears were calling the shots. However, APE could oscillate in this range if BTC maintains the $23K zone. 

Read ApeCoin [APE] Price Prediction 2023-24

Is the range of $6.410 – $5.900 the next APE’s price action zone?

Source: APE/USDT on TradingView

The On Balance Volume (OBV) and the Relative Strength Index (RSI) indicated downticks on the three-hour chart. This suggests that trading volumes dropped, leading to a drop in buying pressure. 

But the RSI value was 61, thus within the bullish threshold, indicating that bulls could gain control anytime. Therefore, APE could oscillate between $5.900 and $6.410, especially if BTC maintains the $23K zone. If BTC moves to the $24K zone, APE could break above $6.410 and retest the $6.793 level. 

Alternatively, bears could drop APE further into the demand zone around $5.900. But a break below the zone’s lower boundary of $5.695 would invalidate the above bias. The drop could stop at the 50-period EMA (exponential moving average) or $5.386. 

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APE’s sentiment was negative, but a short-term accumulation occurred

Source: Santiment

As per Santiment data, APE’s Exchange Flow Balance was negative (-4833) at press time. A negative Exchange Flow Balance shows that more APE flowed out of exchanges than in, indicating a short-term accumulation. Put differently, APE’s price decline offered discounted buying opportunities for other investors. 

However, the drop in trading volumes, as suggested by falling active hourly addresses, could undermine an immediate price reversal or recovery. Thus lending credence to a potential price consolidation within the $5.900 – $6.410 range. 

In addition, APE’s weighted sentiment was negative at the time of publication. But the negative sentiment didn’t prevent the recent price rally and could be negligible in the short-term price action direction. 

Therefore, investors should track BTC price performance to gauge APE’s price action.