Apecoin has, for the last 3 weeks, seen a persistent correction. The token has however managed to find some demand albeit it has largely moved sideways. But despite this, APE is still suppressed below a crucial resistance level. Could this trigger more weaknesses? More details are below but first, highlights:
Apecoin has lost the $7.37 support zone in recent days
This drop could trigger another 15% decline in the near term
But a daily close above $7.37 today will invalidate this analysis
Data Source: TradingView
Where Will APE go from here?
Apecoin bulls need to be patient for now. The coin is weak, and we don’t think the downtrend seen over the last 3 weeks is over. In fact, we expect APE to bottom at around $4.92 before another leg up. In fact, this will not be the first time the coin finds demand at this price.
At the start of May, a period of panic selling put a lot of pressure on APE. The coin established a range of between $4.93 and $7.37 at the time as volatility dominated. We think this pattern will likely play out. But there could be more upside if indeed APE retraces the $4.92 mark.
The last time this happened, the coin bounced back sharply and rallied by nearly 104% in just a few weeks. While a 104% surge may not happen this time, APE will still offer so much upside if it consolidates at $4.93.
How to trade this setup
There are two options here. First, you can wait to see if APE is able to recapture $7.37 in the coming days. If this happens, a short sell in the near term could come into play.
But the best upside remains with the $4.93 bottom. The coin will likely hit this support and consolidate there. That would be a good entry for bulls.