Apecoin: Will traders shorting APE see more gains?

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

• No respite for bulls, as APE’s price dwindled toward the $1 price zone.
• Market speculators are positioned to maximize shorting gains. 

Apecoin’s [APE] dwindling price action extended its bearish momentum to a new low with the price hitting the $1.4 price zone. Apecoin’s on-chain metrics did little to help its price as APE was the biggest loser among leading metaverse-based projects, according to data from CoinMarketCap.

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Realistic or not, here’s APE’s market cap in BTC terms

With sellers firmly in control on the higher timeframes and bulls unable to push past the $1.5 level over the past week, APE could be primed for another downward move toward $1-$1.2.

APE traders poised for another price dip

The 12-hour timeframe showed the intense tussle between buyers and sellers over a two-month period with the price ranging between $1.7 to $2.3.

The break of the bullish defense of the $1.7 level on 17 August signified a major milestone for bears. Furthermore, overwhelmed buyers could do little to stop sellers from flipping the $1.7 level to resistance.

Bullish attempts didn’t see much momentum at the reversal. This was because APE sellers were seen extending control. This was evidenced by the price action between 19-22 August.

Additionally, this extended the On Balance Volume’s (OBV) downtrend and kept the Relative Strength Index (RSI) under the neutral 50. Both signified a lack of demand for APE, despite the sideways structure on the lower timeframes.

Shorts positioned to extend gains

Source: Coinglass

The firmly bearish bias saw traders in the futures market increase their short positions. Data from Coinglass showed that shorts held a significant ratio of the open contracts on the exchange long/short ratio.

How much are 1,10,100 APEs worth today?

Sellers held 52.5% of all contracts over the past 24 hours with short positions worth $103.9 million. This could see APE touch the $1.2 price level over the next week.