ApeCoin: Here’s what card traders should pay attention to before jumping in

Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and is the opinion of the author only.

  • The rejection of $4.03 will provide opportunities for short sellers with targets at $3.948 and $3.828.
  • A break above $4,302 will invalidate the price reversal bias described above.
  • APE saw negative sentiment, but short- and medium-term shareholders saw gains.

ApeCoin [APE] It rose from $3,254 in mid-December to $4,200 on January 4, 2023. The rally has given investors gains of more than 28% over the past three weeks.

But at the time of publication, APE has run into a snag and circumstance that has made a price reversal likely.

It was trading at $4,133, up 4% in the last 24 hours.

Read ApeCoins (APE) Price Prediction 2023-24

The barrier at $4,203: Can bears exploit it?

Source: APE/USDT on TradingView

Although it does not directly indicate a trend reversal, the RSI and MFI movements have created some conditions that can affect the price reversal in APE.

The 12-hour chart showed that the Relative Strength Index (RSI) was deep in the overbought territory and heading down. It showed that the buying pressure had peaked and decreased gradually, giving bears an opportunity in the market.

Likewise, the leverage effect of the bears is reinforced by the Money Flow Index (MFI), a slight decrease which showed that distribution had begun, confirming the influence of the bears.

If the bears’ momentum intensifies, APE might have to correct which could settle at $3948, which is the 50% Fibonacci retracement level at $3921 or $3828. These levels can act as selling targets for short traders.

How do You can get many APEs for $1

However, if the bulls overcome the $4,203 hurdle, especially if BTC is bullish, the APE could break above the 78.6% Fibonacci level at $4,302, negating the bearish bias above.

Medium and short-term APE holders posted gains despite weighted sentiment declining

Source: feeling

According to Santiment data, the market value to realized value (MVRV) ratio has shifted to the positive side for the 30- and 60-day variants. This indicates that those who have held APE in the last month or two have made significant profits. However, long-term owners have reported losses.

In addition, the rise in APE prices coincided with an increase in daily active addresses. In short, the daily trading volume increased and the buying pressure increased, which drove up the APE price.

However, there was a slight decrease in the number of daily active addresses at press time. In addition, APE saw an increase in negative weighted sentiment despite higher prices.

The bearish outlook and slight decrease in trading volume may influence the continued uptrend and should be monitored. Investors should also watch the movements of BTC before entering short positions.

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