- ApeCoin price hovers inside a range, extending from $2.78 to $4.50.
- Even if APE overcomes the range’s mean at $3.64, its upside is limited due to the presence of multiple hurdles.
- A three-day candlestick close below $2.78 will invalidate the bullish thesis.
ApeCoin (APE) price shows initiative to rally, but its path is a tough one due to the presence of multiple blockades. Even if APE manages to overcome the immediate hurdles, bulls need to work overtime to scale old highs.
ApeCoin price initiates trend reversal
ApeCoin price created a range, extending from $2.78 to $4.50 in November 2022. Although APE escaped this range to the upside for nearly two months, it failed to sustain the bullish momentum. As a result, the altcoin re-entered the range in early March.
This price action created a Bearish Breaker that stretches from $3.87 to $5.31. This technical formation is the down candlestick between two higher highs. If the underlying asset slides below this down candlestick, the breaker setup is in play. Any pullback that retests this breaker is typically met with a spike in selling pressure.
ApeCoin price slipped below the breaker’s down candlestick on March 8 and then retested the setup on April 10, which eventually resulted in a 33% crash between April 13 and May 10.
Now, ApeCoin price trades at $3.44 after initiating a 11% ascent in the last week. Going forward, APE will face the range’s mean at $3.64, which is a major blockade. If the altcoin manages to overcome this hurdle, it will face the 50-day and 20-week Exponential Moving Averages at $3.87 and $4.20, respectively.
If ApeCoin price somehow manages to outperform the sellers, then it will face the Bearish Breaker’s lower limit at $5.31.
All in all, APE’s northbound journey is riddled with challenges and investors need to understand these circumstances and book profits at appropriate levels.
APE/USDT 3-day chart
While the optimistic outlook for ApeCoin price makes logical sense, investors need to be aware of the overall market outlook. Should Bitcoin price crash due to uncertain macroeconomic conditions, it could catalyze altcoins to do the same.
Under these conditions, if ApeCoin price produces a three-day candlestick close below $2.78, it will invalidate the bullish thesis and potentially trigger a correction to $2.50.