Wedge Pattern Breakout Sets Apecoin For A 10% jump
The Apecoin price cushioned at the $4.17 level and showed a recovery signal with a three-day rally. Thus, the bull run breached the immediate resistance of the falling wedge pattern and the $4.85 mark. Today, we are going through a retest phase to validate whether the breakout is genuine.
Key points from Apecoin analysis:
- The APE price enters the bullish region of the Bollinger band indicator
- The rising prices reclaim the 20-day EMA resistance
- The intraday trading volume in Apecoin is $378.5 Million, indicating a 151% gain
Source-Tradingview
The Apecoin price took a significant hit during the recent correction and plunged to the 0.786 Fibonacci retracement level. Such a low level in the FIB indicator signals weakness in bullish momentum and will be challenging for buyers to resume their recovery.
However, even though the coin trend is unclear, the discounted Apecoin price attracted more buyers, resting a bullish reversal from $0.786 FIB($4.17) support. As a result, the altcoin rose for three consecutive days and registered a 20.8% pump.
Furthermore, the gradual rise in volume activity reflects a genuine recovery. In addition, this recovery gave a massive breakout from the three-week falling wedge pattern. Thus, the bullish pattern should prolong the current recovery and surpass the altcoin above $5.45.
Anyhow, until Apecoin doesn’t breach the next significant resistance of $6.6, the investor will be under correction threat.
However, a retest phase is still expected to test the breached resistance before a bullish upswing. Thus, this pullback could test the $4.85 horizontal level or breach the trendline to provide an entry opportunity to Apecoin buyers.
On a contrary note, if buyers struggle to follow up on a pattern breakout, the price may plunge back to $4.17 with a breakdown possibility.
Technical Indicator
EMAs: the coin price breached the 20-day EMA resistance, providing an additional edge for the wedge pattern breakout
RSI indicator: the daily-RSI slope skyrocketed from the oversold neckline and hit the near to hit the midline line. Thus, this indicator reflected heavy growth in demand pressure at lower prices.
- Resistance levels: $5.4 and $6
- Support levels: $4.2 and $3.2
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