ApeCoin (APE) price has been rising for a while without creating any rest points and if this continues, a steep correction may be on the way. However, given the bullish sentiment around the APE, the upcoming pullback could also provide patient buyers with an opportunity to stock up on the altcoin at a discount before setting its all-time high.
ApeCoin Prepares for a New Summit
ApeCoin price It marked four highs and three lows since April 20, hitting an all-time high of $20.29. Combining these swing points using trend lines will reveal a falling wedge.
The resulting technical pattern shows a 17% drop obtained by measuring the distance between the first high and low swing. Although ApeCoin does not seem to have breached the lower trendline of the falling wedge, investors can anticipate that the next leg of it could happen at $19.89. Therefore, adding the 17% measure to this level would reveal a target of $16.47.
Adding confidence to the bearish thesis is the bearish divergence between the higher highs of the price and the lower highs of the Relative Strength Index (RSI). This technical formation shows that while the value of the underlying asset is rising, the momentum is decreasing.
Investors can expect the ApeCoin price to retrace to $16.47, down about 18% from its current position. While this move is a short-term bearish outlook, for in-between buyers, it will present an excellent opportunity to save.
Based on the trend-based Fibonacci extension, the rally from $16.47 will likely push ApeCoin price to an all-time high of $24.57. This increase will mean a 50% gain in total.
If it faces some selling pressure while searching for ApeCoin price, it could result in a four-hour candlestick closing below $16.47. If this close happens, the bullish thesis will be invalid. This development will cause the price to drop to $14.43 and even lower.
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.