ApeCoin: Why further losses remain likely

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

• APE has a short-term bullish structure but the bulls could face rejection close to $1.6.
• Traders can look to long the token if the $1.63 level was breached.

ApeCoin [APE] rallied by close to 9% on Tuesday during the time the entire crypto market saw a bounce in prices. While the on-chain metrics gave divergent signals, the price charts showed that bears remained dominant.

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

Is your portfolio green? Check the ApeCoin Profit Calculator

For ApeCoin, the higher timeframe market structure was firmly in favor of the sellers. The psychological $1.5 resistance has held firm over the past week. The Fibonacci extension levels have been respected so far, and showed a move toward $1.2 is likely.

A retest of $1.55 before another leg downward was a possibility APE traders can watch out for

In mid-August, ApeCoin fell from $2.216 to $1.66. A set of Fibonacci retracement and extension levels (pale yellow) was plotted based on this move. The bearish pressure over the past two weeks saw APE continue its descent below $1.66.

The 61.8% extension level at $1.37 was tested on 17 August when APE prices briefly dropped as far south as $1.345. In the two weeks since, the $1.5-$1.55 area served as support for a couple of days but was flipped to resistance on 21 August.

The OBV has been in a downtrend over the past week, even though the RSI climbed higher. The RSI has managed to rise above neutral 50, with a reading of 56 to denote a small amount of bullish momentum on the 4-hour chart. The market structure was also bullish, which suggested we could see a bounce for ApeCoin.

How much are 1, 10, or 100 APE worth today?

The bulls have not escaped their predicament yet

Source: MobChart

Even though the market structure was bullish on the 4-hour chart, the $1.5-$1.55 region represented a strong technical resistance based on recent price action. MobChart data showed large limit sell orders worth 66.7k and 31k APE at $1.57 and $1.59 respectively ($98k and $46k).

Therefore, it was possible that buyers could face exhaustion in the $1.5-$1.6 region and bears could seize control of the market. This would see APE descent toward the 100% Fibonacci extension level at $1.194.