The outlook of APE remains extremely oversold following a roller coaster from February’s high. It recently resumed selling, broke down previous support, and slipped to a new multi-month low.
Last week saw Apecoin through another swing low after initiating a drop from the $3.5 level. This week, the price continued to fall as it extended a dip below the previous multi-month low, which was marked in May.
The price currently looks weak as the bears regain control of the market. However, the drop in volatility indicates that the bears are technically getting exhausted. The recent daily candle formation shows that the selling volume is decreasing by the day.
Similarly, the descending trendline forming on the daily chart has been suppressing buying pressure since February. It could pose more threats to buyers in the future and remains a crucial resistance line for a breakout.
If the buyers take advantage of the weakness in selling, the price could see a significant recovery in the next few days. It may even lead to a change in trend if the buyers keep pushing higher, especially above the trendline.
It is important to note that APE is currently trading in a key demand area. There’s a possibility for a reversal if this area holds well. If not, the price will continue to bleed until it finds solid ground to foot a fresh bullish rally.
APE’s Key Levels To Watch
While APE is trading at support, the next support level to consider for a drop is $2.8 – last December’s low. If that level fails to hold, a breakdown could drive the price to $2.5, followed by $2.
The immediate resistance level to watch out for a retest is $3.2. The $3.52 resistance level is located above the descending trendline. An increase from that level could raise the price to $3.8 and $4.
Key Resistance Levels: $3.2, $3.52, $3.8
Key Support Levels: $2.8, $2.5, $2
- Spot Price: $3.1
- Trend: Bearish
- Volatility: Moderates
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
