crypto analyst Lockridge Okoth’according to, ApeCoin recovery rally is under threat. This week, the altcoin project closed APE worth $16.68 million. will be released into the market. The analyst says that as tokens flood, there will be pressure on the altcoin price.
altcoin It’s possible for things to go wrong when you’re trying to move up
ApeCoin (APE) skip priceIt has been on the rise over the past week. Thus, it recorded higher highs as part of a recovery rally. This rise followed a sharp downtrend that started in early October and a sharper downtrend that started in mid-August. The altcoin price increased by 8% last week to reach the current price of $1,070. The price action, which has been characterized by higher highs over the past few days, is culminating in a recovery rally that could see the altcoin vindicated below the $1,086 resistance level.
Momentum is picking up as the Relative Strength Index (RSI) heads north. This is supported by the green histogram bars of the Awsome Oscillator (AO). Meanwhile, the RSI has broken above the signal line. Thus, a buying signal was created. However, the RSI is still below the 50 mid-line. Also, AO is still in negative territory. These show that the odds for the altcoin are still in favor of the bears.
With this outlook, there is a high probability that the recovery rally will end. Therefore, it is possible that the altcoin price could face a rejection from the $1,086 resistance level. The ensuing selling pressure is likely to send APE back to the $0.996 support floor. Thus, it is likely to drop below this to potentially tag the $0.993 low range.
Attention: ApeCoin abyss token unlock event will happen!
Meanwhile, cryptokoin.com As we reported, a cliff token unlock event is planned in the ApeCoin ecosystem on October 17, where 15.60 million APE tokens worth $16.68 million will be released. Tokens will be allocated to the Yuga Labs ecosystem and its founder, charities, treasury and most interestingly, those who contributed to the launch. Launch contributors are basically early investors who participated in the token reaching its soft cap. This is the minimum amount raised before a token is released. This group of community members is likely to sell to make a quick profit. It is possible that ongoing selling pressure could lead to a correction from the altcoin price recovery rally.
Conversely, increased seller momentum above current levels could see the altcoin price surpass the $1,086 resistance level and potentially extend into the supply zone extending between $1,220 and $1,289. A decisive move above the middle line of this order block at $1,253 would confirm the uptrend.
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