The Apecoin (APE) price has staged a remarkable recovery since plummeting to a new all-time low of $0.99 on October 9. Since then, the price has forged seven consecutive bullish candlesticks, propelling its upward momentum to new heights.
APE Bounces Back from All-Time Low
The APE price embarked on a downward trajectory after reaching a peak of $6.41 on January 26. This decline lacked a discernible pattern, marked by abrupt and sustained selloffs.
Within a span of 256 days, the APE price shed an astounding 85% of its value. The latest low of $0.99 on October 9 breached the critical support level of $1.10, signaling a possible continuation of the downtrend.
However, the price has since rebounded, and its ongoing effort to reclaim the $1.10 support area suggests a potential reversal in fortune.
Whale Accumulation and Upcoming Token Release
Data reveals significant accumulation of APE tokens by several prominent whale accounts. Notable among them is Machi Big Brother, who has acquired $7.43 worth of APE since August 12 while simultaneously withdrawing 2.5 million APE tokens from Binance.
Another unidentified whale address recently withdrew 1.37 million APE from Binance. This substantial accumulation is mirrored by the increased volume whenever the price approaches the $1 range.
However, it is crucial to acknowledge the upcoming release of 15.6 million new APE tokens by the APE Foundation on October 17. This event will inevitably inflate the token’s circulating supply, which currently stands at 368 million. The release will effectively increase the supply by slightly over 4%.
APE Price Prediction: Is the Bottom In?
Technical Analysis
The Relative Strength Index (RSI) is a momentum indicator employed by traders to identify overbought or oversold market conditions. Readings above 50 and an upward trend indicate that buyers maintain control, while readings below 50 suggest the opposite.
The daily RSI for APE provides encouraging signs of a potential market bottom. The indicator has generated a bullish divergence (green line), which occurs when the price declines while the momentum indicator rises. This divergence has lifted the indicator out of oversold territory, another signal associated with bullish trend reversals.
Despite these positive indications, the RSI has yet to cross above 50. If this occurs, it would provide further confirmation of a trend reversal.
In the event of a bullish reversal, the first two resistance levels to watch are $1.30 and $2.05, representing increases of 15% and 85% from the current price, respectively.
- RSI crosses above 50, confirming bullish trend reversal.
- Price rallies to first resistance level at $1.30 (15% increase).
- Potential further rally to second resistance level at $2.05 (85% increase).
- Price closes below $1.05, invalidating bullish reversal.
- Fib retracement analysis suggests potential bottom at $0.91 (17% decrease).
Disclaimer
The information provided in this article is solely for educational and informational purposes and does not constitute financial advice. Readers are advised to conduct their own thorough research and consult with a qualified financial professional before making any investment decisions.
Author: John Smith
Credit and Rights: MigBase.com