Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the writer.
- APE could find stable support and bounce back.
- The rising APE open rate could signal a pending trend reversal.
ApeCoin [APE] has been in a price correction in the last three days. It fell from $5,532 and was hovering around immediate support at the time of writing.
At press time, APE was trading at $4,871, and bears might find it difficult to break above this support level.
Read by Apecoin [APE] price prediction 2023-24
Can the $4,849 support hold?
APE rallied from December 17, 2022 and peaked on January 14, 2022. APE bulls pulled it from its December low of $3,260 to a high of $5,552 on January 14, posting gains of the 70%
The rally cooled off afterwards, leading APE into a price correction. APE was down 12% at time of writing, but bulls could reach for support at $4,849.
The daily chart of APE showed that the RSI pulled back from the overbought zone but was still above 60. This indicated that the buying pressure eased, but APE was still in a bull market structure.
Therefore, the bulls might attempt a price rally after retesting the $4,849 support. They could target the bearish order block at $5,192 or the overhead resistance of $5,552 in the coming days.
However, a gap below $4,849 would invalidate the earlier bullish bias. Such a downtrend could see APE retest the 61.8% Fibonacci level of $4,677, offering additional short selling opportunities for short traders.
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APE daily active addresses and weighted sentiment declined, but OI rose
holy days the data showed that APE daily active addresses fell. As a result, fewer accounts traded the asset, undermining trading volumes and any uptrend momentum.
In the same period, APE sentiment-weighted pulled back from its positive elevation and almost rested at the neutral line at press time. It shows that investor confidence fell, but remained positive.
APE open interest (OI) decreased from Jan. 12 but gradually increased on Jan. 18, according to Coinglass. The OI/price divergence on January 13-15 led to a price reversal on January 16. The current OI/price divergence could set up APE for another price reversal and influence uptrend momentum.
Such a price reversal could see APE secure the $4,849 support and target the overhead resistance at $5,552. However, a bearish BTC could extend the APE price correction and invalidate the previous bullish forecast.