Some of the metaverse cryptocurrencies are shedding losses today after witnessing a massive surge in volatility all through last week. Apecoin now looks weak after losing a vital psychological level.
After Apecoin soared to a three-week high of $5.6, where exhaustion set in last week, the price dropped and managed to close above the $5 psychological level. It later opened short this week and started to show signs of weakness.
This weakness was not significant until when Bitcoin dropped by 5% yesterday. As a result of this, Apecoin eventually lost the above psychological level without any hurdles. The price plunged to around $4.5 before it bounced and traded slightly above it.
Apecoin is still trading within a bullish zone from a short-term perspective. It is forming a new swing high. If it can find a rebound level above the descending channel, fresh buying pressure should be expected. A drop below the monthly low could cause a severe loss in price.
Unfortunately, the latest sentiment across the crypto market seems to have overturned the past week of positive actions in the metaverse market. More negative action is likely to follow Apecoin if Bitcoin’s price continues to fall in the coming days.
APE’s Key Levels To Watch Out For
Following this week’s drawdown, Apecoin is now sitting on a support level of $4.5. If the price plunges below this support, the closest support to watch is $4.2, which coincides with the ascending trend line formed over the past two months. There is also support at $3.7 in case of a breakdown.
A rebound at this ascending trend line should signal an increase. For now, the nearest resistance to watch is $4.7 in case of a recovery. If the price continues to rise, the next resistance levels to watch are $5 and $5.2. An increase above the $5.6 level would confirm more upside rally to $6 in no time.
Key Resistance Levels: $4.7, $5.2, $5.6
Key Support Levels: $4.5, $4.2, $3.7
- Spot Price: $4.53
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: aleksandrasova/123RF // Image Effects by Colorcinch
