ApeCoin Surges Over 15% Despite Sluggish Market Sentiment

ApeCoin Surges Over 15% Despite Sluggish Market Sentiment
  • APE projected heightened bull vigor after breaking over the 20/50/200 EMA.
  • A breakdown of the $5.20-$5.22 range at the close would indicate a near-term downtrend.

Although ApeCoin (APE) fell from its two-month peak in early August, the cryptocurrency was able to recover and find support at the $4.2 support level. In the short term, this recovery has set up a bullish narrative since it has formed into a bullish pattern on the four-hour timescale.

APE/USDT: Source: TradingView

APE projected heightened bull vigor after breaking over the 20/50/200 EMA but showed a little pullback from the $5.6-resistance. The cryptocurrency linked to BAYC will attempt to continue its current bull run if the bulls can keep their advantage above the $5.4 support. At the time of publication, APE was trading at $5.3, a gain of 15.3% over the prior 24-hour period.

Bullish Momentum Ahead

As soon as it was trading around its ten-week high, APE began a precipitous decline towards its multi-month support in the $4.2-region. Due to a steep decrease of nearly 45% from its August highs, it has fallen below its 20/50/200 EMA and is now in a serious downtrend.

With the $4.2-support allowing the bulls to recover, APE delivered a return on investment of more than 40% and served as a sturdy mast for its bullish spike.

This purchasing power has been reinforced over the last several hours by a bullish cross on the 20/50. The exponential moving averages (EMAs) were still pointing upward, indicating that there was a good likelihood of a continued rally. If sellers are unable to shut below the immediate support, a compression in the $5.4-$5.6 zone may occur soon. 

A breakdown of the $5.20-$5.22 range at the close would indicate a near-term downtrend ahead of a prolonged rise. If demand drops down, the token might fall below the 200-day exponential moving average (EMA) before a possible recovery.

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