ApeCoin (APE) Although the price is preparing for an upward movement, the recent declines discouraged many buyers and reduced or stopped their purchases. A break in the bullish pattern may be a tactic used by APE to gather liquidity. If this prediction is correct, there may be an explosion in price after liquidity is collected.
ApeCoin Price Ready to Rise
The ‘bullish pennant’ formed on the ApeCoin price chart has created a generally positive mood. Suffering from the unexpected collapse from the Terra (LUNA) front APE price, created a ‘flagpole’ between 12-13 May, showing that an overall rise of 76% is possible. The consolidation of ‘lower highs’ and ‘higher lows’ following this formation formed the pennant we just mentioned.
This continuation model, on the other hand, has targeted a price of $12.8 as a result of a 43% increase determined by measuring the height of the flagpole and adding $8.9, the current breakout point. These theoretical predictions shared by analysts resulted in the APE breaking from the pennant in the actual price action.
Although the break of the pennant naturally invalidates the technical setup, the possibility of a ‘manipulation’ that occurred to collect the ‘stop-losses’ under the declines is also emphasized. With these manipulations, if the liquidity collects as desired, ApeCoin price will reverse the current trend and go up again.
For this scenario to happen, the APE must rise above the descending trendline, i.e. the upper trendline of the pennant. Such a development ApeCoin priceIt will show that the coin is ready to retest the $10.68 hurdle. This rally will create a 35% rise, but that’s not where the upside is limited. If the bulls manage to overcome this resistance, APE could revisit the $12.80 level and push the overall gain up to 62%.
Regardless of the upbeat outlook, a bearish break invalidated the bullish pennants. Additionally, a move below $7.19 to produce a lower low would invalidate the bullish argument for ApeCoin price and trigger a collapse towards the $5 level.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.