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- ApeCoin may bounce back to $5, but trend has been in favor of the bears
- Could buying pressure confuse sellers as APE approaches resistance?
In September, ApeCoin recorded a huge rise from $4.2 to $6. This nearly 45% move took just over two weeks. Since then, the price has once again shown weakness on the charts and in late September it fell below $5.4.
Below are AMBCrypto price predictions for ApeCoin [APE] 2022
The forecast price above shows a bearish price prediction. Technical analysis also indicates that a bearish movement may develop in the coming weeks, despite the massive growth in the number of token holders.
Shortcomings can be filled in price charts before rejection
The aforementioned weakness emerged by breaking the market structure to see a bearish bias forming in late September (highlighted in yellow). This change on the 12-hour chart led to more losses for ApeCoin. It was accompanied by a retest of the RSI at neutral 50 as resistance. CMF also fell below -0.05 last week to show significant capital outflow from the market. At the same time, OBV showed a lack of buying volume.
The $5.28 level was retested as resistance before the sellers could push prices to the $4.2 support level. The strong bearish movement has left a vacant range on the price charts due to the strength of the bearish movement. Marked in red, widening the fair value gap (FVG) from $4.78 to $5.
The confluence of this gap on the charts with the psychologically important $5 resistance level was of particular interest. For the short sellers, a retest of the $4.9-$5 area could provide a selling opportunity with tight but well-defined risk and a great reward further south.
However, caution has been recommended. Bitcoin has not shown upward strength yet, with the $19.6K and $20.4K resistance levels stable. However, a quick pump up can catch bears out of time.
Is an increase in daily active titles good for the bulls?
Since August, the rally of the daily active headlines precedes the local top, so the price has regained much of the gains from the previous rally. In the past week, the same metric saw an increase. Does this result mean that the bulls need to find shelter?
Social dominance peaked at nearly 3% in October and has been unable to pass 1.5% in recent weeks. However, dominance formed higher lows this month. By itself, this does not necessarily mean that there is an upward trend on the price charts.
Nurturing the bearish notion above would be a daily session close above $5 for ApeCoin. In the south, the same levels of $4.6 and $4.2 can be used to take profits for the bears.