Recent market excitement surrounds ApeCoin’s [APE] breakout from a descending triangle pattern on the weekly chart, pointing towards a possible shift in bullish momentum.
Currently, ApeCoin is being traded at $1.86, showing a 2.61% decrease in the last 24 hours. Despite this, technical analyses indicate room for further increase.
The Relative Strength Index (RSI) stands at 65.94, indicating strong momentum. Moreover, a bullish crossover in moving averages confirms an upward trend with the shorter MA exceeding the longer MA.
Yet, the journey forward remains uncertain, marked by a crucial resistance level at $2.70.
APE On-Chain Insights Display Diverse Signals
Delving deeper into on-chain data offers a multifaceted view of ApeCoin’s trajectory. Network growth signal a 0.63% increase, and significant transactions have surged by 2.45%, suggesting interest from notable entities.
Although holder concentration leans slightly bullish at -0.03%, the “in the money” metric remains neutral at 0.42%, hinting at indecisiveness. While on-chain signals lean towards bullishness, they urge caution and the necessity for sustained momentum.
Decline in Address Activity Raises Concerns
Conversely, address activity metrics point towards concerns regarding ecosystem engagement. New addresses have plummeted by 10.96% in the past week, alongside a 6.58% decrease in active addresses.
Furthermore, zero-balance addresses have reduced by 13.67%, signaling an overall decline in activity. This dip may challenge ApeCoin’s ability to maintain its breakout unless there is a rejuvenation in investor interest.
Derivatives Market Reflects Cautious Optimism
Within the derivatives market, ApeCoin’s OI-weighted funding rate sits at 0.0518%, portraying a neutral to slightly bullish sentiment among traders, without substantial bearish pressure.
The absence of a predominantly bullish sentiment indicates traders’ cautious stance, awaiting strong driving forces for a potential significant uptrend.
Despite the positive signs of breaking out from the descending triangle pattern and the presence of bullish technical indicators, numerous factors will dictate the sustainability of this upward trend.
The $2.70 resistance barrier poses a significant challenge, combined with dwindling address activity metrics. The drop in new, active, and zero-balance addresses underscores doubts about sustained investor engagement over time.
Looking at the mixed signals from on-chain and funding rate metrics, a cautiously optimistic approach is required to ensure continued involvement from retail and institutional investors.
Therefore, ApeCoin’s ability to uphold its bullish trajectory hinges on overcoming obstacles, surpassing critical resistance levels, and nurturing a more dynamic and involved community.