with ApeCoin [APE] For $5, buyers will finally show up this week

warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice.

  • ApeCoin is back in support, but buying could be risky
  • The increased supply of exchanges likely increased sales activity

ApeCoin [APE] It reached the $5 support level again after it failed to defend the $5.5-$5.3 region from a bearish attack last week. Since mid-September, the price has shown losses on the chart. USDT Dominance has been in an uptrend since mid-September. Investors and traders have been willing to hold more Tether than other crypto assets over the past three weeks, a fact seen by selling pressure on Bitcoin and the rest of the market in recent weeks.

Expect bulls to make bids in these three support areas

Source: APE / USDT on TradingView

Three support areas have been identified for ApeCoin. Since mid-August, the $5, $4.65 and $4.15 areas have been areas where buyers have shown some strength. At the time of writing, the market structure for APE is bearish.

The short-term downtrend started when APE turned the $5.5 area from support to resistance just over a week ago. This downward movement on the lower time frame has seen the market structure turn bearish.

In a downtrend, the support area may not make a huge bounce, if it does at all. The RSI fell below the neutral 50 level and has since tested the same resistance level. Meanwhile, OBV and Chaikin Money Flow have been consistent.

Overall, indicators have been anticipating a downward momentum over the past few days, but there hasn’t been a significant amount of selling to support it.

View APE when exchanged along with social size

ApeCoin at $5 Psychological Support - Will Buyers Appear This Week?

Source: feeling

Social volume rallies haven’t told the whole story of price action. However, these rallies came on or shortly after APE’s strong move. The supply on the stock exchanges has not changed somewhat since mid-September.

Both supply and social volume saw a sharp rise over the weekend followed by a dump of about 10% for APE.

The selling pressure of the past few days, combined with the bearish structure, means that buying APE at the psychological support $5 could be a risky endeavor. A tight stop loss of less than $4.9, with a take profit of $5.3 for a scalp trade, can be considered. Risk-averse traders can wait to move to $5.3 – $5.5 to sell the asset.

Leave a Reply

Your email address will not be published. Required fields are marked *