- APE’s recent reversal set the stage for bulls to re-enter and change the short-term narrative.
- Traders should closely monitor the long/short ratios on key exchanges to assess any shifts in sentiment.
ApeCoin [APE] has shown signs of recovery, recently breaking out of a descending channel pattern on its daily chart, sparking hopes for a bullish reversal.
After experiencing significant selling pressure earlier, APE saw a promising 52% rally over the past week and briefly touched the $0.87 resistance level. However, the question remained: Can the bulls sustain this momentum, or will we see a period of consolidation?
Current price action and key levels to keep an eye on
Source: TradingView, APE/USDT
ApeCoin’s recent breakout from its descending channel pattern marked a crucial shift in sentiment. APE was trading around $0.818 at the time of writing, up by approximately 11% in the last 24 hours.
Per the VPVR (Volume Profile Visible Range) metric, the price hovered within a high-liquidity zone. This suggested that consolidation around the $0.7 to $0.87 range is highly probable in the near term.
For APE to maintain bullish momentum, buyers must breach the immediate resistance at $0.87. A clear break above this level could pave the way for a retest of the 200-day EMA, which stood at $1.062.
It’s worth noting that this is a crucial level that could trigger a stronger uptrend if reclaimed.
On the downside, immediate support was at $0.699, near the 20-day and 50-day EMAs. Bulls need these levels to hold for them to maintain their near-term edge.
A breakdown below these EMAs could lead to a test of the previous support at $0.541—where buyers might look to step in again.
The Relative Strength Index (RSI) was at 65.87 at press time. While not fully overbought yet, it suggested the potential for a short-term correction or consolidation as buying momentum cools down.
A continued dip toward the 50-58 range would hint at a likely consolidation in the coming days.
Signs of a slowdown?
Source: Coinglass
Per the latest derivatives data, APE’s volume surged by over 151% to reach $501.31M. On the other hand, open interest saw a rise of 20.44% to $55.20M. Despite this, the long/short ratio shows a mixed sentiment.
Binance APE/USDT long/short ratio stood at 0.7928 to show that short positions slightly outweighed longs.
However, the top traders on Binance show a more bullish sentiment, with a ratio of 1.1526 for positions. Also, the ratio on OKX stood at 1.38, showing a more optimistic view.
This suggested a neutral to slightly bullish sentiment in the derivatives market, with no strong bias emerging just yet.
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The price action in the coming days will largely depend on whether the bulls can push the price above $0.87 and, eventually, the 200-day EMA.
A failure to do so could lead to sideways action or a minor pullback, offering buyers an opportunity to re-enter within the $0.7-$0.87 range.
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