Apecoin rebounds from $3.20 support level, what’s next

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

• APE looks to kickstart recovery from key support level.
• Declining supply on exchanges eased selling pressure. 

Apecoin’s [APE] bearish trend from mid-February has seen the Ethereum [ETH]-based coin lose over 40% of its value. However, a reversal could be imminent for APE. According to data from CoinMarketCap, APE recorded gains of 6.3% over the past seven days.

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

The crypto market’s recent choppiness could affect a strong bullish rally for APE with Bitcoin [BTC] ranging between the $26k and $27k price zones. It remains to be seen if the $3.20 support level can hold and act as a springboard for a bullish reversal.

Bulls look to rebound from intense selling pressure

Source: APE/USDT on Trading View

The market domination by sellers saw price smash through the $4.56 support level on 8 March. Bulls were able to rally from the $3.81 support level but found it difficult to break through the new resistance at $4.56. Prices oscillated between both levels over a month-long period before further bearish momentum sank prices lower.

The response from bulls at the $3.20 support level has seen APE rebound to trade at $3.43, as of press time. On-chart indicators suggested further support for the bullish rally.

The Relative Strength Indicator (RSI) made a strong climb out of the oversold zone and stood at the neutral 50 mark, as of the time of writing. The On Balance Volume (OBV) also posted a slight uptick to hint at increasing demand for APE.

Previous rallies by bulls have been met with stiff pushback by bears at the resistance level. If bulls can close above the $3.81 resistance, then it can look to strongly reverse the bearish momentum. Conversely, if the price fails to break through, it could usher in another wave of selling with bears targeting the November 2022 low of $2.81.

Market sentiment raises buyers’ expectations

Source: Santiment

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Data from Santiment revealed that the number of APE holders has been on a steady rise. This could signal an ongoing accumulation trend for a bullish reversal. The supply on exchanges also declined within the same period, hinting at eased sell pressure.

Similarly, the exchange flow balance was negative–evidence of long-term accumulation of APE at current discounted prices. This could provide bulls with a good opportunity to record significant gains.