Bearish Pattern Threatens APE Price to Revisit $3.1

A bearish breakdown from a four-week-old channel of an inverted flag pattern released the trapped bearish momentum. The APE price is currently going through a retest phase, which will validate whether the breakdown is genuine or not. A potential downfall would plunge the altcoin back to June bottom support of $3.3. but should you worry?

Key points: 

• The APE market price has depreciated 12% since last week
• The coin sellers reclaimed the 20-day EMA
• The intraday trading volume in Apecoin is $505.2 Million, indicating a 121.2% gain.

Source- Tradingview

Following June’s second-week sell-off, the APE/USDT pair bounced back from the $3.1 mark on June 15th. The resulting rally hit a high of $5.57, registering a gain of 80%. Furthermore, this recovery rally with new higher highs showed the formation of an inverted flag pattern.

On July 10th, the sellers breached the support trendline of the pattern, indicating the resumption of the prevailing downtrend. The breakdown rally reached the $4.18 mark and reverted to retest the flipped resistance.

 If the APE price sustains below the trendline, the selling pressure may escalate and pull the price 30% down to $3.1- $3.

However, volume activity during the retest phase is higher than the $0.4 breakdown, indicating weakness in bearish commitment. Thus, if buyers push the APE price above the trendline, the replenished bullish momentum may drive the price above $5.2.

Technical Indicator

Superindicator: This indicator accentuates the sellers posses trend control

EMAs: Since early May, the APE price has traded below the fast-moving average of 20-day EMA, indicating aggressive selling in the past two months. Moreover, with the recent recovery, the coin price shows a fakeout from the 20 EMA slope, encouraging the ongoing downfall.

MACD indicator: The fast and slow lines are drawn too close and can soon provide a bearish crossover. The diminishing green bars in the histogram chart show losing bullish momentum.

• Resistance levels: $5.2 and $6
• Support levels: $4 and $3.3