thecoinrepublic.com
- 1 APE price may break the consolidation channel soon.
- 2 The price has lost 18.81% in a month.
- 3 APE price is trapped in a narrow consolidation phase revealing a bearish pennant pattern.
APE price is currently trapped in a narrow consolidation phase, and revealed the formation of a bearish pennant pattern, giving out cloudy signals. Many analysts place their bets on the recent multi-year partnership between Yuga Labs and Luxury fashion brand Gucci. Yuga Labs is responsible for the most popular NFT collection (Bored Ape Yacht Club) BAYC, CryptoPunks, and several others.
APE creator Yuga Labs operates Otherside, a virtual world and gaming platform themed around BAYC. The new collaboration aims to explore the integration of fashion and entertainment in the Metaverse. It also aims to foster interaction between both companies’ communities.
The Pictorial
APE price is currently trapped in a narrow consolidation phase, and formed a bearish pennant pattern. This pattern is a strong bearish signal which intensifies the underlying selling pressure once complete. However, an aggressive downfall may not be the only result. The ongoing downtrend in APE price witnesses a temporary horizontal trend. Furthermore, a pennant pattern after a sharp fall forms a short break period allowing sellers to check stability at a lower level.
Thus, as the APE price nears the pennant peak, investors may witness a breakdown opportunity. It is more likely to breach the lower trendline and amplify the prevailing downtrend. On the contrary, EMA ribbon forms a bullish crossover (green circle), hinting at a possibility of a bullish breakout after the pattern is complete. The sideways moving OBV suggests the market is neutral and waiting for a breakout or a breakdown. The Volume Oscillator drops slightly showing the short term pattern of a bearish break down.
The Peephole
The smaller time frame shows a prolonged consolidation for APE price. The CMF moves closer to the zero-mark indicating a largely neutral market. The MACD nears a convergence and records descending buyer bars. The RSI more along the half line to suggest a neutral pull from both buyers and sellers. The shorter time frame indicators hint at a bearish breakdown, but its intensity can only be defined once the pattern is complete.
Conclusion
APE price is currently trapped in a narrow consolidation phase, and formed a bearish pennant pattern. The ongoing downtrend in APE price witnesses a temporary horizontal trend. Many analysts place their bets on the recent multi-year partnership between Yuga Labs and Luxury fashion brand Gucci. The holders can wait for the pattern to complete to observe a breakout or a breakdown. The support near $3.095 can act as a strong base for the projected downtrend.
Technical levels
Support levels: $3.905 and $3.430
Resistance levels: $4.775 and $5.875
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.