$5.6 Breakout May Trigger Bullish Reversal pattern

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Published 41 mins ago

The Apecoin (APE) recovery set-up reveals the formation of a cup and handles pattern. Following this pattern, the coin price should charge onto the overhead resistance of $5.67, aiming for a bullish breakthrough. This breakout should accelerate buying pressure and allow a recovery rally to $7.34

Key points: 

  • The APE price needs to rise 18% before triggering the bullish reversal pattern.
  • The 20 day EMA flipped into a viable support level.
  • The intraday trading volume in Apecoin is $293 Million, indicating an 80% gain.

APE/USDT ChartSource-Tradingview

Following a U-shaped recovery in June, the 21% pullback in the APE/USDT pair revealed the shape of a cup and handle pattern. Furthermore, on July 1st, the altcoin rebounded from a flipped support of $4.26, forming the handle support for coin buyers.

The post-pullback rally has surged the APE price by 12%, which currently trades at the $4.8 mark. The sustained buying should continue the bullish rally 18% higher to $5.67 neckline resistance.

In response to this bullish reversal pattern, the APE price should breach this overhead resistance to obtain a directional bias. The $5.67 breakout may propel the coin price 30% higher to the $7.34 mark.

On a contrary note, the coin buyer’s failure to surpass the mentioned resistance would indicate a lack of bullish momentum, which may initiate a range-bound rally within the $5.67 and $3.11 barriers.

Technical Indicator

EMAs: after nearly two months, the coin price breached the dynamic resistance of the 20 day EMA line. This EMA provided significant support along with the $2.4 mark during the recent pullback and should bolster the $5.6 breakout.

Vortex indicator: the ongoing recovery in APE price may prevent a possible bearish crossover between the VI+ and VI- slopes, indicating the bullish momentum persists.

  • Resistance levels: $5.67 and $6.47
  • Support levels: $4.2 and $3.11

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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