ApeCoin (APE) price analysis: Rally above $22 looks possible
ApeCoin is correcting in an uptrend, started by metaverse-related rumours
ApeCoin rallied sharply in the past few days on rumours that Yuga Labs, the firm behind the popular Bored Ape Yacht Club NFT collection, will undertake the sale of digital land for its “Otherside” metaverse project and the sale will be in APE tokens. However, nothing has been confirmed yet and that may be one of the reasons for profit-booking as of 21 April 2022.
The rumour was started by Twitter user renegademaster, who claimed to have received the report “by a reliable source” but added that the information was neither confirmed nor official news. He said that Yuga Labs would do a land sale through a “Dutch auction of some sort starting at 600 APE.”
If the rumour turns out to be true, it is likely to boost demand for APE tokens. Another minor positive was that Gemini Earn, a lending program by the crypto exchange Gemini, listed APE recently.
Will buyers accumulate at lower levels? Could APE go up? Read the APE price analysis to find out what the charts suggest.
ApeCoin technical analysis: daily chart
APE’s price has been trading inside an ascending channel. After bears repeatedly failed to sink the price below the support line of the channel, the APE/USD pair started a recovery which reached the resistance line of the channel.
In an ascending channel pattern, buyers usually buy the dip to the support line and book profits near the resistance line and that is what happened with the pair. Traders booked profit near the resistance line of the channel, which has pulled the price lower.
The first support on the downside is $14.27, where the buyers are likely to step in. If the price rebounds off this level with strength, the bulls will again attempt to resume the uptrend. If they push and sustain the price above the channel, the pair could pick up momentum and rally to $22. The relative strength index (RSI) in the positive territory indicates that the bulls have a slight edge.
Contrary to this assumption, if the price turns down and breaks below $14.27, it will suggest that traders continue to book profits. The pair could then slide toward the support line of the channel. A break and close below this support could signal that bears are back in the game.
ApeCoin technical analysis: Four-hour chart
APE’s price turned up sharply from $11 and soared to $16.72. This pushed the RSI deep into the overbought territory, indicating that the rally was overheated in the near term. This may have tempted short-term traders to book profits, resulting in a pullback.
The bears have pulled the price back below the breakout level of $15.42 which is a negative sign. This suggests that the traders may be rushing to the exit. If bulls fail to push the price back above $15.42 quickly, the pair could slide to $13.24.
Alternatively, if the price turns up from the current level and breaks above $15.42, it will suggest that the sentiment remains positive and traders are buying on dips. The bulls will then attempt to push the price above $16.72 and resume the uptrend.
ApeCoin: Buy or sell at current levels?
ApeCoin’s price analysis shows that the pair is trading inside an ascending channel pattern. A bounce off $14.27 could result in a retest of $16.72. A break and close above the channel could signal the resumption of the uptrend. Conversely, a break below $14.27 could sink the pair to the support line of the channel.
Whatever the outcome might be, your decision to trade depends on your attitude to risk, your expertise in this market, the spread of your investment portfolio and how comfortable you are about losing money. This analysis does not constitute investment advice. It’s important to make your own analysis before deciding to invest. You should never invest more than you can afford to lose.