APECoin Price Analysis: APE retraced 2.5% this week, will there be more selling?

  • APECoin is fluctuating inside an ascending parallel channel.
  • The RSI indicator tends to drop to retest the half line on the daily price scale.
  • APECoin price with bitcoin pair looks sideways at 0.000286 Satoshis.

There has been a strong rise in the price of APECoin over the past five weeks. Buyers continue to drive the price of the altcoin higher. Amid the uptrend, buyers hit a nine-week high of $7.8 last week.

However, buyers are struggling for more stability this week. Thus, the weekly price candle is formed inside the previous bullish candle. The price action forms a higher-lower and higher-high pattern in an ascending parallel channel on the 4-hour price scale. Now buyers try to manage the asset above the support line of a given pattern.

The 200-day moving average is trading below the current price of APECoin on the 4-hour chart. Despite the retracement phase, the altcoin is holding above the $6.5 short-term support level. At the same time, the coin was trading at $7.06 at the time of writing.

APECoin’s market capitalization increased by 3% to exceed $2.1 billion in the past 24 hours according to CMC. However, speculators’ trading volume saw a 15% drop last night. Additionally, the price of APECoin with a bitcoin pair appears to be sideways at 0.000286 Satoshis.

Bulls need to manage APE token above ascending parallel channel

The most immediate upside barrier for bulls is at $8.0, if the buyers break above this resistance level, the $10 conceptual round is likely to affect the uptrend. Therefore, the RSI indicator descends to retest the half line on the daily price scale.

Although the MACD indicator remains above the neutral level, it looks flat. At the same time, the histogram decreases.

Conclusion

APECoin is still trading in a parallel rising channel despite pulling back near the $8.0 resistance. The RSI indicator is showing a slight retracement signal and if the RSI crosses below the maximum half line, the bears can break this parallel channel.

Support level – $5.0 and $4.0

Resistance level – $8.0 and $10

Disclaimer

The views and opinions expressed by the author, or anyone named in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading crypto assets involves the risk of financial loss.

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