Recently, ApeCoin [APE] experienced a rebound from the $0.553 support level, instilling optimism among bulls. As of the latest update, APE was trading at $0.722 and encountering immediate resistance at $0.8. The critical question now is whether the buyers can uphold the current momentum to surpass key resistance levels.
Positive Momentum Regained by Buyers
Analysis of ApeCoin’s daily chart reveals the emergence of a rising broadening wedge pattern, signaling a gradual uptick in buying pressure. This pattern typically indicates increased volatility, offering both upside and downside potentials.
Notably, the 20-day and 50-day EMAs (currently positioned around $0.736) continue to serve as significant resistance levels, preventing ApeCoin’s price from establishing a sustained upward trend.
If APE manages to close above these levels, it could trigger a robust rally targeting the $0.86 resistance level before testing the 200-day EMA at $0.95.
While the 20-day EMA and 50-day EMA for APE are on a downward trajectory, they are nearing testing levels, indicating a pivotal juncture for the coin. A breakout above these moving averages might confirm a reversal in trend and empower the bulls to challenge higher resistance zones.
Meanwhile, the RSI currently stands at 47, indicative of a relatively neutral stance at the moment. A move beyond the 50-mark could signal a shift towards bullish sentiment, while a drop towards the 30 level would reinforce existing bearish pressures.
Significant Levels to Monitor
The $0.553 level remains critical as a primary support level for APE. Should sellers succeed in driving the price below this threshold, ApeCoin could face increased downside risks.
A breakdown from the rising broadening wedge structure may potentially trigger a descent back to the $0.553 mark or even lower levels.
On the upside, the $0.8 resistance level aligns with the upper boundary of the wedge pattern, and a substantial bounce from this point would likely signal a patterned uptrend in upcoming sessions.
Derivatives Insights and Market Sentiment
Derivatives data reveals that APE’s open interest has declined by 3.04% to $29.94 million, pointing to reduced trading activity. However, the volume has surged by 8.49% to $68.65 million, indicating a renewed interest in APE.
Noteworthy long/short ratios on Binance (2.9017) and OKX (3.56) indicate a prevailing bullish sentiment among traders.
Of particular interest, prominent traders on Binance exhibit a substantial long preference, with long/short ratios of 3.095 (accounts) and 1.3669 (positions). This implies that while market sentiment overall may be cautious, leading traders hold an optimistic outlook regarding APE’s recovery.
Investors are advised to monitor the unfolding of the rising broadening wedge pattern, as it could signal the direction of the next significant price movement.