ApeCoin flashes bullish rebound signs but there’s more to the story
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ApeCoin halted extended losses with a 15% bounce off the $1 price level.
- However, the rise in supply on exchanges could trigger another selling wave.
ApeCoin’s [APE] bearish downtrend bottomed out after bulls found support at $1. This came after a period of sideways price action in September.
Read ApeCoin’s [APE] Price Prediction 2023-2024
The 15% bounce off the $1 support level saw ApeCoin trading at $1.25, as of press time. It remains to be seen if buyers can mount a sustained reversal due to the heavily bearish market structure of APE.
Can APE reverse losses?
A steep decline in NFT interest along with market conditions saw APE’s price plunge from $6.4 to $1 in 2023 alone. However, its recent price action suggested an opportunity for bulls to reverse the losses.
The influx of strong buying pressure at the $1 price zone saw the Relative Strength Index (RSI) move from the lower range to the upper range. The RSI briefly touched the overbought zone before a slight pullback.
Along with the RSI, the On Balance Volume (OBV) surged from less than a million to 32 million within the past five days. This signified a massive increase in transaction volume, with bulls roaring back to life.
As such, buyers can target gains at $1.4 to $1.6. However, sustained bullish momentum for ApeCoin will require flipping the $1.7 resistance to support.
Is this a short pullback before another price dip?
How much are 1,10,100 APEs worth today?
On-chain data from Santiment revealed that sellers could be looking to flip the narrative of the recent bullish rebound. While the 30d Market Value to Realized Value (MVRV) ratio was positive at 4.35%, the Supply on Exchanges was equally on an uptrend.
This signaled that near-term holders were sitting in profits and could cash in on those profits soon, which could stifle the bullish rebound and take ApeCoin back to the $1 range.