ApeCoin [APE] shrinks below $4.2 – Buyers can bid at these levels

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• APE was bearish on the 12-hour chart. 
• Daily active addresses declined.

ApeCoin [APE] depreciated from $4.6 and breached a key mid-point level of $4.2, flipping the structure to bearish on the 12-hour chart. Since mid-March, the asset has been oscillating between $3.8 and $4.6.

Related articles

How to Claim ApeCoin Airdrop: Quick Guide and Tips

29 July 2024

Maximize Your Free ApeCoin: How to Claim Airdrops

27 July 2024

ADVERTISEMENT

Notably, the price action has been firmly within the upper range in the past few days, reinforcing the overall bullish sentiment in the same period. 

Read Apecoin [APE] Price Prediction 2023-24

However, the crypto market has recently experienced increased market choppiness amidst increasing interest rates fears. Notably, Bitcoin [BTC] dropped sharply from $30k, reclaimed it, then retreated to $29k before sliding lower to $28k, at the time of writing. 

If macro headwinds persist, APE could drop to lower supports and offer new buying opportunities. 

Will the drop extend?

On the 12-hour chart, the RSI was in the lower range, while the stochastic RSI slid into the oversold zone – evidence of increased selling pressure. Although the oversold condition could suggest a likely reversal, a strong recovery can happen if BTC reclaims the $29k and $30k price ranges. 

In addition, the OBV (On Balance Volume) dipped – confirming the demand for APE faltered in the past few days.

As such, APE could drop further, especially if BTC fails to reclaim higher price ranges. A close below the channel’s mid-level of $4.2 could set APE to slide to a lower boundary of $4.0 or $3.8.

Buying at the above levels ($4.0 or $3.8) could offer a good risk ratio if APE rebounds and retests the upper boundary of $4.6 or inflicts a bullish breakout.

Buyers could track for a pullback retest or local double-bottom formation on the lower supports to confirm the recovery. 

However, a close above the channel’s mid-point of $4.2 will invalidate the above thesis. Such a move could push APE to retest $4.6 without necessarily dropping to the lower supports. 

Daily active addresses declined

Source: Santiment

Is your portfolio green? Check out APE Profit Calculator

After peaking at 4.8k on 6 April, APE’s daily active addresses declined. At press time, daily active addresses were below 2k. This could favor sellers as limited trading volumes undermines a strong recovery. 

However, supply on exchanges dipped at press time, indicating short-term selling pressure eased. Similarly, the exchange flow balance was negative – evidence of short-term accumulation of APE at current discounted prices. 

If the accumulation trend continues, APE could recover without dropping to the lower boundary of $3.8, invalidating the above thesis. Investors should track BTC price action for better-optimized trades.