Apecoin (APE) has been moving upwards since May 12 and has so far created one higher low in the process.
APE has been falling since reaching a high of $27.60 on April 28. Initially, the price bounced at the $14.70 horizontal area, seemingly validating it as support (green icon). But, the upward movement was unsuccessful and the price broke down the next day.
The breakdown was also combined with an RSI decrease below 50 (red icon). Such RSI movements are considered signs of bearish trends. As a result, an RSI increase above 50 would be required in order for the trend to be considered bullish.
So far, the price has reached a low of $5.17 on May 11. It has increased slightly since and is currently trading at $6.70.
Crypto trader @MTI_Trading tweeted a chart of APE, stating that despite the increase, the price is still facing significant resistance at $8.
A closer look at the six-hour chart shows that the price has been following a descending resistance line since May 9. The line rejected it on May 31.
Additionally, APE has already created one higher low (green icon).
The main resistance area is between $7.70 and $8.30. This is the 0.5 – 0.618 Fib retracement resistance area. Additionally, it coincides with a horizontal area that previously acted as support. The area is now expected to act as resistance.
So, even if APE were to break out from the resistance line, there would be strong resistance all the way up to $8.30.
The six-hour RSI is at 50, which is considered a neutral reading. So, it does not assist in determining if APE will break out or not.
APE wave count analysis
The downward movement since the April high resembles a five-wave decrease. So, it is possible that the ongoing bounce is part of an A-B-C corrective structure.
If so, the price could increase to $11, giving waves A:C a 1:1 ratio. Though, if this is the correct count, it would mean that another downward movement would eventually follow.