ApeCoin reaches a stiff resistance zone, should traders look to go short
Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
- ApeCoin has been bullish up to now two weeks
- It reached the next timeframe resistance zone close to $4.5, can the bulls break above it?
Learn ApeCoin’s [APE] worth prediction 2023-24
As talked about in a earlier article, ApeCoin noticed vital resistance within the $4.2-$4.5 area. Open Curiosity behind the asset leaped upward as the worth rallied previous the $3.2 mark, however has waned considerably up to now few days. On shorter timeframes, APE continued to have a bullish bias.
The 12-hour bearish breaker looms massive as bulls attempt to advance previous $4
On the decrease timeframes, ApeCoin had impartial to bearish momentum within the first couple of days of December. Solely on 5 November did APE start to see a renewed push from the patrons to drive costs previous $4.2.
The area highlighted by the purple field on the worth chart represented a 12-hour bearish breaker fashioned on 2 November. It was a bullish order block on the time, nevertheless it was damaged by the decisive promoting on 8 November.
Since then it has represented a area of sturdy resistance. APE confronted a rejection there on 30 November. ApeCoin slid from $4.47 to $3.78 on December 2. This bearish breaker additionally has confluence with the 61.8% and 78.6% Fibonacci retracement ranges (yellow).
Bitcoin has resistance within the $17.6k-$18k area additionally. It was unclear how BTC or APE may transfer within the coming days. However, a rejection from the $4.2-$4.5 area was a risk. The $4 mark was essential psychologically. It was additionally a major liquidity pocket up to now week.
Therefore, a drop under it and a subsequent retest can provide a promoting alternative. In the meantime, patrons can watch for a breakout previous $4.6 and a retest of the $4.5-$4.6 area earlier than trying to get in.
Open Curiosity is on the rise as soon as extra alongside the worth
From 19 November until 30 November, the Open Curiosity was in an uptrend. The value of ApeCoin was additionally in an uptrend in the identical interval as APE appreciated from $3.15 to $4.4. This confirmed that patrons have been fairly assured within the asset regardless of the market situations in current weeks.
Early December noticed the OI flatted as APE dropped to $3.88. At press time, each the Open Curiosity and the worth have been in an uptrend as soon as extra. This recommended the probability of additional features. But, patrons have to be cautious as a result of greater timeframe resistance current at $4.5.