Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- APE consolidated at key support level.
- Daily addresses fell to hinder bullish reversal.
ApeCoin [APE] continued its bearish swing, falling from $3.81 to $3.21, as of writing. This increased the value ApeCoin lost since mid-February to over 46%. Moreover, the current price was hovering just above the key $3.20 support level with sellers looking to extend the bearish trend.
With the overall crypto market experiencing a mild bullish rally led by Bitcoin [BTC] rising to $28k, APE can rise again from $3.20, or will bears claim another support level?
Sellers maintain bearish momentum with a retest of the key support level
Source: APE/USDT on trade view
A recent price report highlighted the possibility of a bullish reversal for ApeCoin from the $3.20 support level. However, the short-term bullish gains were quickly erased by the intense selling pressure that caused bears to crack the $4.56 and $3.81 support levels.
On the 12-hour chart, the RSI was in the lower range at 37 – evidence of increased selling pressure. The OBV also continued its downward movement, confirming the decline in demand for APE. The CMF stood at -0.17 to highlight increased capital outflows.
Price consolidation at the $3.20 level over the past five days could be a sign of a weakening support level. This could prompt bears to try to break the level again with the November 2022 low of $2.81 in sight. Conversely, buyers could use this new test to launch another rally towards the $3.81 resistance level.
Read Apecoin’s [APE] Price Forecast 2023-24
Declining daily addresses are dampening buyer confidence
Source: Sentiment
Since May 10, daily active addresses have been declining. Dates from Sanitation revealed that daily active addresses were below 1k, as of writing. This could hinder a bullish rally as scarce trading volume sabotages buyers’ efforts.
The 30-day MVRV ratio remained negative, indicating that most traders will realize losses at the asset’s current price.
In addition, shorts dominated the long/short ratio with an advantage of 51.8%. This suggested that speculators were actively chasing maximum profits from APE’s bearish trend.
Source: Mint glass
