- ApeCoin saw a 15% plunge, returning towards the stable support at $5.93.
- The downward move hint at bullishness and might lead to an 80% rebound.
- Breaching the support barrier at $5.02 will annul APE’s bullish narrative.
Current market conditions forced ApeCoin to where it stood about five days ago. The drop emerged as the overall crypto spectrum endured massive overnight declines.
Bitcoin lost over 5% within the past 24 hours to levels beneath $30,000 again. That translated to bearishness in the altcoin space, including ApeCoin. Nevertheless, analysts believe the current drop is bullish, predicting massive upside potential.
APE and Bottom Reversal Setup
ApeCoin saw its price bouncing off the support at $5.93 on 27 May, following a brief consolidation phase. The upward move had APE gaining 25% to sweep the hurdle at $7.19. Nevertheless, bulls could not sustain the upsurge, leading to a top formation.
Overnight sessions had Bitcoin on a downward trend, and APE followed suit. That had ApeCoin hitting the support at $5.93, its current price level. Though the downward move might mean bearishness, the alt may form a Triple Tap (a triple bottom) pattern.
This technical pattern needs a drop beneath the barrier at $5.93 plus a swift recovery beyond the initially printed range low near $5.93. The last touch will showcase as APE price lowered to hit the created low, concluding the setup.
The resulting uptrend might take APE prices towards the 100 4hr and 200 4hr MAs at $7.32 and $9.38, respectively. Amplified bullishness will see the uptick stretching towards the obstacle at $10.68, translating to an 80% total gain.
Though the bullish narrative, APE prices depend on Bitcoin reactions. Extended declines by the leading crypto will see alts, including ApeCoin, on downward tendencies.
Moreover, bears dominate the crypto spectrum. Such an atmosphere might see APE producing a 4hr candle closing beneath the support at $5.02, invalidating the bullish narrative. That might push the BAYC token into a discovery phase.
What are your thoughts about ApeCoin and its projection? Can the token reclaim incurred losses? You can comment in the section below.
Editorial credit: photo_gonzo / shutterstock.com
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