Apecoin’s RSI divergence could lead to a 20% rally

After plummeting significantly last week, Apecoin (APE) is presently experiencing a recovery rally. This followed the coin’s latest low of $3.13, the price of APE has dropped from its May and April highs.

Which were formerly well above $20. However, there are some indicators that a short-term rise could be on the way. Here are some key points:

  • The RSI is currently diverging from the price action on the 4-hour chart. This suggests that APE could see a relief rally in the short term.
  • The moving averages are also starting to curl up which is another bullish sign.
  • The MACD is also close to generating a bullish crossover.
  • 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

Data Source: Tradingview

Analysis of the Apecoin price

APE has been losing ground in the past month or two, slipping about 70%. This is a result of increased demand for the coin.

APE was formed from a base price of $3.13, which is its new 2022 low. However, a descending price trendline has generated dynamic resistance at around $3.2.

The RSI is currently in oversold territory. A bullish divergence is also developing between the price action and the indicator. This is another bullish sign.

The MACD is also close to generating a bullish crossover.

APE has surged in the past 24 hours with a 15% gain. The coin has established a descending trendline resistance at $3.2. A breakout of this level could lead to a 20% rally in the price of APE.

APE is trading within a narrow range, but it has managed to stay above the support. This appears to be holding up thus far. Before any downturn, the coin may rise by at least 20%.

However, there’s also cause for optimism that the present momentum will continue. The key for APE bulls would be to recapture $5.1 support.

This was an important level of resistance turned into support in August. A move above this could see APE targeting $8 in the short term.

Therefore, based on the current technical indicators. It seems APE could be setting up for a strong rally in the coming days. Altcoins have been on fire lately and APE could be one to watch out for.

Although it will not be simple, examining APE’s resilience and what it has accomplished thus far makes it seem feasible. If the price reaches $5.1 or beyond, there will be a lot of buying pressure; and APE may settle at around $7.

This would be nearly double the current value. However, if the coin drops below $3.2 in the following days, this analysis is no longer valid.

The RSI on the 4-hour chart is showing signs of bullish divergence. Which hints that the recent correction could be coming to an end. Moreover, the MACD has crossed into positive territory and is close to generating a buy signal.

From the daily chart, it can be seen that APE had been following a descending triangle pattern since late February. The coin broke out of this pattern last week

How to use this APE setup

The $3.2 support is critical. As long as the price stays above this level, the downside risk is limited.

APE may surge above $5.1, which is a compelling argument. You can buy once APE reaches $5 and sell for around $7.2 in the short term. If you don’t want to take risks.

Do you agree with the above analysis? Whatever you think, hit the comment button and tell us!