Apecoin is currently seeing a relief rally after crashing considerably last week. This came after the coin set a new low of $3.13. APE has also seen a sharp fall from its May and April highs which were, at some point, well above $20. However, there are some signs that a short-term upswing could be on the cards. Here are some points:
APE has surged in the past 24 hours with a 15% gain
The coin has established a descending trendline with dynamic resistance
Consolidations above $3.2 could provide a decisively bullish trend reversal
After dropping nearly 70% over the past month or so, APE finally sees some demand. The coin is coming from a bottom price of $3.13, which is its new 2022 low. However, a descending trendline in the price action has established dynamic resistance at around $3.2.
So far, APE has managed to hold this and is in fact rallying today. The coin could see an upswing of at least 20% before any pullback. However, there is also reason to believe that the current momentum could in fact push further. The key for APE bulls would be to reclaim the $5.1 support.
Although this won’t be easy, looking at the kind of resilience APE has shown, it is probable. A surge above $5.1 will trigger massive buying pressure and could see APE settle at around $7. This would be almost double the current price. Nonetheless, if the coin falls below $3.2 in the coming days, this analysis becomes invalidated.
The key is the $3.2 support. As long as the price stays above this, then the downside risk remains limited.
Also, there is a case to be made for a surge above $5.1. In case you don’t want to take risks, you can buy once APE hits $5 and exit at around $7.2 in the short term.
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