RSI Divergence May Trigger 20% Relief Rally

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Published 42 mins ago

Since last month, the APE/USDT pair has dropped 67% and marked a new low of $3.13. This downfall respects a descending trendline which provides a dynamic resistance to coin price. However, a potential bullish reversal from $3.2 support may challenge this resistance trendline for recovery opportunity.

Key points: 

  • A bullish breakout from the dynamics resistance trendline may drive APE price by 145%
  • The 50 EMA assists sellers in maintaining the ongoing downtrend.
  • The intraday trading volume in Apecoin is $407.6 Million indicating a 50.8% gain.

APE/USDT ChartSource- Tradingview

During the first half of May, the ApeCoin(APE) price witnessed a significant fall and plunged to a $5.1 low. However, responding to the widespread uncertainty in the crypto market during the second half, the altcoin consolation above this new support.

Furthermore, the APE chart shows lower high peaks during the consolidation phase, indicating the rising bearish momentum. On June 10th, the coin holders lost the $5.1 support and tumbled 37% lower to the $3.13 mark.

Since last week, the coin chart displayed several lower price rejection candles at $3.2 support, indicating a high demand zone. A potential bullish reversal can surge the APE  price 20% higher and retest the descending trendline.

Moreover, a breakout from dynamic resistance could trigger a genuine recovery and drive the altcoin to $9.64 resistance.

On a contrary note, a reversal from the dynamics resistance would continue the prevailing trend and increase the $3.1 breakdown.

Technical Indicator

Relative strength index- during the multiple to retest to $3.1 support, the RSI slope escaped the oversold region and jumped above the 20-day. Moreover, this bullish divergence encourages the reversal theory of hitting the resistance trendline.

Bollinger Band- the APE price thrusting into the indicator’s upper band, indicates growth in underlying bullishness.

  • Resistance levels: $5.16 and $7.5
  • Support levels: $3.16 and $2.16

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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