ApeCoin [APE] retraces to perch atop $5 – will bulls maintain the uptrend?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The market structure was flipped to bearish.
- Momentum is also in favor of sellers.
Bitcoin [BTC] has traded in the $21.6k region over the past few days. The determined defense of this support level by the buyers meant an upward move could soon follow. Beneath the $21.2k-$21.6k area, BTC does not have significant support until $20k and $19.6k.
How much is 1, 10, 100 APE worth today?
If Bitcoin sees a rally in the coming days, ApeCoin [APE] will also likely follow in its footsteps. As things stand, APE has a bearish outlook, but it was in a deep retracement. The uptrend from mid-January will not be broken until the price falls beneath $4-$4.5.
ApeCoin closes in on another bullish daily order block
The market structure was broken when APE descended beneath $5.29. However, there remained another zone of support, highlighted in cyan. This bullish order block extended from $4.5 to $4.95, and there is also a horizontal level of significance at $4.6.
The $4.6 level is likely to be retested once more. The RSI stood at 42 to show weak bearish pressure, but this could heighten if Bitcoin sees another slump toward $21.4k or lower. On the other hand, the OBV saw minimal retracement. This suggested that the pullback from $6.3 did not witness large-scale selling.
An uptick in the OBV could be a sign that a bullish reversal was around the corner. Buyers can wait for lower timeframe market structures to see a sharp bullish break before looking to buy.
Realistic or not, here’s APE’s market cap in BTC’s terms
The exchange flow balance shows selling pressure spikes in recent days
While the OBV did not witness a large drop, 12 – 13 February saw large spikes in the amount of APE transferred into exchanges. They amounted to a positive balance of 800k and 700k on successive days. This suggested that the APE sent the exchanges were likely sold. Indeed, ApeCoin has fallen from $5.4 to $5 in the past three days.
The age consumed metric showed that the assets transferred might not have been from long-term holders. There were no noticeable spikes on this metric in the past two weeks. Meanwhile, in response to the fall in prices, the 30-day MVRV ratio fell into negative territory. The profit-taking that occurred after 20 January was over.