Apecoin(APE) price showcase an ascending triangle in the 4-hour chart since its listing on Coinbase. The prices crawl higher as the pattern comes closer to the breakout point. However, the rising selling momentum triggers a bearish breakdown from this bullish pattern suggesting a revisit to the previous higher low support at $12.6
Key points:
- The APEcoin prices break below the support trendline resulting in triangle fallout.
- The intraday trading volume in Apecoin is $978.65 Million indicating a 36% loss.
Source- Tradingview
With the bearish reversal observed on closing hours on 28th March from $15.50, the APE/USD pair found support at the ascending trendline. As a result, the coin price crawls higher slowly with the help of the support trendline bringing a 2.5% growth.
However, the slithering prices showcase a sudden surge in selling pressure after the Doji candle formations. Therefore, the prices break below the support trendline with a bearish engulfing candle of 3.45%.
Furthermore, the breakdown candle shows a follow-through of 1.83%, which could result in another engulfing candlestick if the selling pressure increases. Hence, a rise in trading volume with higher price rejection from the support trendline will intensify the selling signal.
If sellers crack below the 50-day EMA, traders with bearish sentiment can expect a price fall to $12.5.
Opposing the bearish ideology, if sellers failed to sustain below the breached trendline, the altcoin would reenter the triangle pattern, and the resulting fakeout would drive the price to the $15.45 mark.
Technical Indicator
The sudden downfall has breached the 20-day EMA dynamic support and tags the second line of defense, i.e., 50-period EMA. A follow-up breakdown will accelerate the selling pressure.
However, the RSI slope succumbs under the 14-period average line indicating sellers are taking over the trend control.
- Resistance levels: $15.50 and $18
- Support levels: $14 and $12.5
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/ape-price-prediction-triangle-fallout-threatens-second-correction-on-ape-holders/