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Tracing ApeCoin’s next crack at this support level

2min Read

APE hovered just above the key support level of $3.20 with sellers looking to continue the bearish trend.

ApeCoin attempts to crack another support, will it be successful

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

ApeCoin [APE] continued its bearish swing, depreciating from $3.81 to trade at $3.21, as of press time. This extended the value lost by ApeCoin since mid-February to over 46%. Furthermore, the current price hovered just above the key support level of $3.20 with sellers looking to extend the bearish trend.

With the general crypto market experiencing a mild bullish rally led by Bitcoin [BTC] surging into $28k, can APE rally again from $3.20, or will bears claim another support level?

Sellers maintain bearish momentum with a retest of key support level

Source: APE/USDT on Trading View

A recent price report highlighted the possibility of a bullish reversal for ApeCoin from the $3.20 support level. However, the short-term bullish gains were quickly erased by the intense selling pressure that has seen bears crack the $4.56 and $3.81 support levels.

On the 12-hour chart, the RSI was in the lower range with a reading of 37 – evidence of heightened selling pressure. The OBV also continued its downward slide – confirming the decline in demand for APE. The CMF stood at -0.17 to highlight increased capital outflows.

Price consolidating at the $3.20 level over the past five days could signal a weakening of the support level. This could trigger bears to attempt another break of the level with the November 2022 low of $2.81 in sight. Conversely, buyers could use this retest to launch another rally toward the $3.81 resistance level.

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

Declining daily addresses dampen buyers’ confidence

Source: Santiment

The daily active addresses have been on a decline since 10 May. Data from Santiment revealed that daily active addresses were below 1k, as of press time. This could hamper a bullish rally with sparse trading volume sabotaging buyers’ efforts.

The 30-day MVRV ratio remained negative which signaled that most traders will be realizing losses at the asset’s current price.

Furthermore, shorts held the upper hand in the long/short ratio with a 51.8% advantage. This suggested speculators were actively on the hunt to maximize gains from APE’s bearish trend.

Source: Coinglass


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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