ApeCoin (APE): Investors Planning to Short Might Capitalize on This Pattern
ApeCoin has traded beneath the daily 20 Exponential Moving Average and the 50 Exponential Moving Average amidst escalated selling since APE touched its ATH on April 28, 2022. The latest higher peaks and troughs recorded a lucrative recovery for the asset.
However, bears remained furious, rejecting prices at higher levels. For now, sellers seem prepared to stretch the bearish period in the upcoming sessions as the price chart shows a bearish flag pattern. While publishing this blog, APE changed hands at $4.4223, 4.12% up within the previous 24 hours.
ApeCoin Daily Timeframe
ApeCoin recorded consistent lower highs within the previous two months, following the U-turn from the resistance at $27.6. Meanwhile, the 88% slump from the April peaks had APE plummeting towards the ATLs (all-time lows) at $3.0661 on June 15. ApeCoin reacted to the plunge with somewhat bouncy recoveries on its charts.
APE has witnessed a bearish flag & pole on the 24hr chart for more than two weeks. A decisive closing beneath the prevailing pattern might expose APE to further downsides as the 20 Exponential Moving Average suppresses buying efforts. Furthermore, the volume bias maintained downtrends during the flag setup formation. Generally, this pattern performs best amidst decline volumes.
A decisive closing beneath the flag might bolster bearish efforts to retest the support at $3.3. That would see buyers struggling to halt selling efforts from printing newer ATLs (all-time lows). Extended pattern oscillations will likely trigger reversal from $5.6.
Reasoning
The RSI (Relative Strength Index) has hovered near the bearish territory for the past two months. Breaking beneath 42 might mean intensified selling momentum for APE to retest $3.3. Moreover, the CMF (Chaikin Money Flow) confirmed the bearish narrative. Enthusiasts should consider possible breaks beyond this mark to highlight bearish invalidations.
Final Thought
Considering the bearish flag & pole pattern plus APE’s price declining beneath the 20-50 exponential moving average, the alt might witness a patterned breakdown. The targets would stay as mentioned above. Lastly, ApeCoin investors should watch on-chain developments and overall market sentiment to ensure lucrative moves.
Stay tuned for the latest developments in the crypto space.
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