A popular metaverse coin is trading in an important price zone to consider as it could initiate drastic moves in either direction. Analysts warn of a bullish scenario that is too smooth to be true.
This metaverse coin may be luring the bulls
ApeCoin (APE) is showing early signs of the conclusion of the consolidation triangle. APE price failed to close above the 61.8% retracement level, which is a key resistance level. Selling in the $13.40 area on the 8-hour chart shows that the bears are forming a strong barrier at this level. An upside break from a trendline can cause traders to believe the current APE price is bullish and find themselves stuck in a broader bearish trap.
Many investors may be misled by the current market movement in APE price, which could be interpreted as bullish. As a result, ApeCoin’s price may continue to trade sideways and a close below $10.60 would be the most reliable entry point for the decline. If that happens, the APE price could easily drop to $7 and in some cases even as low as $4.00. It’s important to note that the volume profile provides no information about who is in command of the current consolidation.
Conclusion
According to Fxstreet analysts, whales can be expected to position their stop loss above Wave C, which is around $15.50 at this point. Violation of this level is the first example where the bearish scenario is excluded. If this bullish scenario materialises, the ApeCoin price is expected to skyrocket between $18 and $20, representing a 60 percent gain over the current APE price of $0.01. The chart below shows the price action of April 4, when Apecoin price was trading in the descending channel.
Why is Apecoin (APE) important?
Apecoin (APE) was airdropped to members of the Bored Ape Yacht Club NFT collection. Almost every major centralized crypto exchange listed Apecoin right after launch. While this hype helped it hit the $40 ATH price within hours, the metaverse coin soon returned most of its gains. For more, you can find the Apecoin guide that we prepared as Kriptokoin.com here.
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