Bearish RSI Divergence Hints Trend Reversal

The Apecoin price analysis hints at the price reversal in the offering. The price opened higher but could not sustain the gains and retrace lower. A long wick day’s red candlestick indicates the presence of the seller near the higher levels. As of writing, APE/USD is reading at $6.63, down 4.33% for the day.

• APE price turns negative following massive gains of 27% in two days.
• The bulls are facing rejection near the $7.19 level indicating weakness at a higher level.
• Negative divergence on the RSI signals more rounds of selling in the coin.

APE could move further lower

On the daily time frame, the Apecoin price analysis indicates a probable price correction, a healthy 0ne!

Currently, the price found support near the 0.23% Fibonacci retracement level that extends from the lows of $4.19.  However, there is a higher chance of breaking the support and diving lower.

Firstly, the formation of a ‘Doji’ candlestick in the previous session, followed by a red candlestick. The formation is confirmation of a selling bias following an indecisive trading session.

Secondly, the bearish RSI divergence since July 19, pointing at a deeper correction toward the 0.38% Fibonacci retracement level placed at $6.02.

On the contrary, a move towards $6.85 would make bulls hopeful to retest $7.19.

4-hour chart hints down move

On the four-hour time frame, the Price is making higher highs and higher lows, indicating bullishness. But the structure on the higher side is now getting weak, making a double top. As a consequence, the distribution started at the crucial supply zone at around $7.19.

RSI as well as MACD is showing weakness in the four-hour time frame, indicating signs of reversal. 

The market cap is above $ 2 billion, down 4.3% over the past 24 hours from CoinMarketCap data. During the price correction, trading volume continued to decline, suggesting less volatile and deep selling.