As we delve into the third quarter, Apecoin’s (APE) price trajectory has been largely characterized by a declining trend. This discouraging outlook has cast a shadow over long-term positions across all timeframes. However, there is still potential for a turnaround, as APE’s downturn has found a temporary halt at a crucial range low. Yet, amidst the volatility of Bitcoin (BTC), a robust recovery remains uncertain.
Understanding Apecoin’s Price Movement
APE’s price movements have been steadily descending since June, marking range extremes and mid-range as vital price levels for market observers. The question on everyone’s mind is whether the bulls will successfully defend the range low. APE’s momentum and trend have been bearish on the lower timeframe, which may further postpone the anticipated recovery.
The descending channel presents clear levels that APE could retest in the forthcoming hours or days. However, the potential levels at which a bearish trend could halt are not entirely transparent. To provide some clarity, we’ve used a Fibonacci retracement tool (in yellow) between the recent high and low.
The Role of Bitcoin
If BTC manages to bounce back from the $24.8k – $26k zone, there’s a possibility that APE could also rebound from the range lows near $1.5. On the upside, the mid-range ($1.77) and the range-high (near $2) present significant resistance. Conversely, a bearish breakout could find relief at critical and immediate levels at $1.345 and $1.16, according to the Fibonacci tool.
The Relative Strength Index, after an attempted reversal, was forced back into the oversold territory, highlighting the prevailing selling pressure. Likewise, the Chaikin Money Flow (CMF) has struggled to cross above the zero mark, indicating muted capital inflows.
Looking at the Derivatives Side
Coinglass data reveals that APE has seen more liquidations of long positions across all timeframes. This indicates a prevailing bearish bias on the derivatives side. Furthermore, the derivatives trading volume has dipped to $232.5 million, a 60% drop. Open Interest (OI) rates have also declined by 4% to $66 million. These negative readings reinforce the possibility of a delayed rebound or further downward pressure.
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As we navigate these uncertain times, one thing remains clear: in the battle of range lows – bulls prevail, the outcome is still up in the air. Will Apecoin manage to overcome the downturn and bounce back? Only time will tell.
