ApeCoin’s [APE] decline snowballed shortly after reaching ATH levels in April of this year. As a result, the currency denied buyers the ability to power any trend-altering rallies for nearly seven months.
A string of red candles followed the latest bearish pattern breakout. The price action was resting near its immediate support zone of $2.8. While the price fell below the EMAs, the short-term momentum swung towards sellers.
At press time, APE was trading at $2.97, up 1.94% in the previous 24 hours.
Can APE buyers prevent a breakdown from its bearish pattern?
Source: TradingView, APE/USDT
After a substantial loss of over 89% from its ATH levels, APE gravitated toward the $4.2 level. Since then, the buyers strived to alter the bearish narrative but the seven-month trendline resistance (white, dashed) constricted all buying efforts.
The trendline resistance inflicted a reversal that eventually chalked out a descending triangle setup on the daily chart. In the meantime, the series of lower highs induced a patterned breakdown that pulled APE toward its all-time low on 14 November.
With the 20 EMA (red) and the 50 EMA (cyan) looking south again, the bears would look to control the near-term trend.
A potential rebound from the $2.8 baseline can provoke an immediate comeback. In this case, the 20 EMA could restrict the bullish resurgence in the $3.9-$4.2 range. A close below the $2.8-level could expose the alt to a further downside. In this case, the altcoin could enter a price discovery.
The Relative Strength Index (RSI) declined and swayed in the bearish zone near the oversold mark. Nonetheless, the Chaikin Money Flow’s (CMF) higher troughs affirmed a mild bullish divergence with the price action.
Can the buyers bounce back?
Source: Santiment
An analysis of data from Santiment unveiled a major spike in APE’s network growth over the last few days. Empirically, the price has been sensitive to this metric. But the wider market conditions have curtailed the buying efforts.
Also, the 30-day MVRV marked a slight growth but still remained negative at press time.
Finally, investors/traders should factor in broader market sentiment and on-chain developments to make a profitable move.
