fxstreet.com
- ApeCoin price is down 7% on January 30.
- APE rallied by 40% in the last two weeks, but the uptrend's strength could be waning.
- A breach above $6.41 would invalidate the bearish potential.
ApeCoin price should remain on traders' watch list as a volatile move could be imminent. Key levels have been assessed to forecast possible outcomes for the Ethereum-based NFT token.
ApeCoin price is one to watch
ApeCoin price confirmed last week's "exhaustive uptrend thesis" as the digital currency has fallen by 7%. The APE price now has a choice to make as mixed signals arise on higher time frames. Although the next move will be hard to predict, it will likely be a volatile move worth participating in.
ApeCoin price currently auctions at $5.76. The bears have successfully breached the 8-day exponential moving average (EMA) for the second time in January. The last time the 8-day EMA lost support, the 21-day simple moving average provided cushion for the fall and enabled a 40% rally shortly after. Traders are likely hoping for a repeat in price action; however, a risk to the downside seems more substantial.
For instance, the Relative Strength Index and the indicator used to assess a trend's kinetic potential show the recent 40% uptrend move as a weekend rally when compared to the prior. This is noted by various divergences produced between January 17 and 27. While prices rose, the RSI remained submerged under the previous upswings reading. The bearish divergence is a common pattern found near the top of the trend before sharp reversals.
The divergence justifies bears aiming to wipe out bulls who entered the market after January 16. Thus, the origin point of the 40% rally at $4.53 is in jeopardy of liquidation. The bearish scenario creates a potential 20% decline from the Ethereum-based NFT token’s current market value.
APE/USDT 1-day chart
Traders entering the market can place an invalidation point above January's high at $6.41. A second attempt to tag the swing high could induce a buyer's frenzy with bullish targets in the $7 zone. The ApeCoin price would rally by 28% if the bulls were to succeed.