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ApeCoin [APE]: With recovery beyond grasp, here’s where you can find some respite

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ApeCoin continues to trend lower amidst selling pressure, here are some levels respite could be seen
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Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

The higher timeframe charts for ApeCoin suggested that the downtrend could continue, especially as a hidden bearish divergence developed. Bitcoin was also in a strong downtrend, and a move below $20k can not yet be ruled out. Fibonacci extension levels gave some support levels for APE, with the $3 also likely to be important in the days and weeks to come.

APE- 12-Hour Chart

ApeCoin continues to trend lower amidst selling pressure, here are some levels respite could be seen

Source: APE/USDT on TradingView

The Fibonacci retracement and extension levels (pale yellow) were plotted for a move up from $10.51 to $27.6. This APE move occurred back in April. The extension levels to the downside gave support levels at $5.86 and $1.97.

The $5.86-$6 area also had a long-term horizontal support level which has since been flipped to resistance. The selling pressure of June saw APE slide right past the $5 and $4 psychological support levels. $3.1 came to the rescue, and a bullish engulfing candle was seen in the most recent trading session.

Does this indicate a rally upward? Not necessarily. On the higher timeframes, even a move to $5 would be insufficient to flip the market structure to bullish.

Rationale

ApeCoin continues to trend lower amidst selling pressure, here are some levels respite could be seen

Source: APE/USDT on TradingView

The RSI has been below the neutral 50 line since late April. This signifies the brute strength of the bears in recent weeks. At the time of writing, a hidden bearish divergence (orange) materialized. The price made a lower high while the RSI climbed higher. The divergence indicated a continuation in the previous downtrend.

The Awesome Oscillator was also below the zero line, to show momentum was southward. The A/D line also descended down the charts. Combined with a CMF value of -0.26, the selling pressure was shown to be acute.

Conclusion

The severe sell-side pressure meant that recovery was unlikely for ApeCoin just yet. A move above $7.5 would be needed to break the bearish market structure. At press time, the demand to initiate such a recovery was not yet seen.

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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