fxstreet.com
- ApeCoin price has declined by 6% in less than 24 hours.
- APE could decline into the $4 zone before the bulls step in.
- Invalidation of the downtrend could occur if the bulls hurdle the recent swing high at $5.54.
ApeCoin price could be setting up for a breach of lower support levels. The uptrend could be in jeopardy if the bulls evade the challenge.
ApeCoin could be in trouble
ApeCoin price is undergoing turbulent market behavior as the bears have forged the largest decline for the year. The Ethereum-based NFT token rallied 55% since the start of the new year and has since declined by 6% in the last 24 hours.
APE price currently auctions at $4.56. The bears have successfully forged a daily candlestick close beneath the 8-day exponential moving average. The settlement suggests the first stages of the bull run are now complete and that a much larger decline could be on the way to test support levels below. Key areas of interest will be the 21-day simple moving average at $4.55 and potentially the psychological $4 price zone if the indicator fails to hold as support.
If the bears push any further than $4, the ascending trend channel, which has acted as support throughout the fall and winter, would be breached. A sweep-the-low event targeting November’s low at $2.64 would become a possible scenario, resulting in a 40% decline from APE’ price.
APE/USDT 1-day char
Invalidation of the bearish outlook could arise if the bulls manage to hurdle the $5.54 swing high established on January 14. A breach of the latter could trigger a buying frenzy targeting the September monthly high at $5.86. The bullish scenario creates the possibility for a 40% increase from the current ApeCoin price.