Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- If the price of $4.03 is rejected, short sellers could have targets at $3.948 or $3.828.
- Price reversal bias described above would be invalidated if there is a break above $4.302.
- APE experienced negative sentiment but short- and long-term investors saw profits.
ApeCoin [APE] The stock has risen from $3.254 in December to $4.200 on January 4, 2023. Investors saw a 28% gain in the past three weeks due to this rally.
APE however, faced a significant hurdle at press time and conditions that made a price rebound likely.
It was trading at $4.133 and had risen 4% in the past 24 hours.
Read ApeCoin’s (APE) Price Predictions 2023-24
The problem at $4.203: Can bears profit?
Source: TradingView – APE/USDT
Although they don’t directly indicate a trend reversal, the RSI and MFI movements have created some conditions that could influence the price reversal of APE.
The 12-hour chart showed the Relative Strength Index, (RSI), was deep in overbought territory but was trending down. It revealed that buying pressure had peaked, and was slowly easing away, giving the bears a window of opportunity to enter the market.
Similarly, the bears’ leverage is reinforced by the Money Flow Index (MFI), a slight downtick, which showed distribution had begun, underlining the influence of the bears.
If the bears’ momentum intensifies, APE could be forced into a correction that could settle at $3.948, the 50% Fib retracement level of $3.921 or $3.828. These levels could be used as selling targets by short-term traders.
How You can get many APE for as little as $1
If the bulls can overcome the $4.203 hurdle, particularly if BTC is bullish then APE could break through the 78.6% Fib level at $4.302, which would invalidate the previous bearish bias
APE has seen short-term and medium-term gains, despite the fall in weighted sentiment
Source: Santiment
According to Santiment data the MVRV (Market Valu to Realized Value) ratio has shifted towards the positive for the 30-day and 60-day variables. This means that APE holders who have held APE for the past month or so made substantial gains. However, long-term APE holders suffered losses.
APE prices rose in tandem with daily active addresses. In short, APE prices were driven up by increased daily trading volumes and increased buying pressure.
However, daily active addresses saw a slight decrease by press time. APE was also affected by a higher negative-weighted sentiment, despite the rise in prices.
A bearish outlook and a slight drop in trading volume could impact the uptrend. Investors should monitor these developments. Investors should be aware of the BTC movements before entering short positions.