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ApeCoin price edges near a critical level, is the uptrend genuine?

Analytics

www.fxstreet.com 28 June 2022 02:35, UTC
  
Reading time: ~2 m

  • ApeCoin price shows compression of two Simple Moving Averages as price consolidates.
  • APE price shows bullish re-entrance on the Volume Profile pattern, but traders should steer away from being early buyers.
  • Invalidation of the bear trend remains at $6.15.

ApeCoin price edges near a bullish market trigger, but being an early bull could result in a catastrophic loss. 

ApeCoin price is in a make-or-break predicament

Apecoin is preparing to pierce through the $6.15 level, which has been mentioned in previous outlooks as a critical bearish invalidation level needed to confirm a bullish rally. On Monday, June 27, the bulls produced a bullish retest into the $5.15 zone since the first rejection was witnessed at the $5.00 barrier level over the weekend. 

ApeCoin price signals bullish confluence as the 8- and 21-day Simple Moving Averages are currently compressing under the five-dollar trading range. This can be viewed as the initial bullish signs before a golden cross happens, which could induce a rally towards the $6.15 invalidation level and subsequently land in the $9.00 region. 

tm/ape/6/27/22

APE/USDT 6-Hour Chart

However, traders should be cautious around this area as the technicals can also manifest into an opposite bearish scenario. If the 21-Day MA rolls over the 8-Day counterpart, the bears could fiercely strike again, sending the APE coin price as low as the $3.00 price level for a 40% loss. Thus being early buyers is not favorable from a risk-to-reward standpoint.

The safer play is to wait for a bullish confirmation through a breach of the $6.15 level. If the bulls conquer this level, there will be plenty of opportunities to join the uptrend upon a pullback and rally as high as $9.00, resulting in an 80% increase from the current ApeCoin price.


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