ApeCoin (APE) endured bearish tendencies in August. The alternative token explored the $7.8 swing high during the month’s first week but failed to flip the value area at $7.5 into support. APE disappointed bulls after resorting to southward actions.
The token dropped approximately 40% within the previous month, whereas its market capitalization hovered at $1.5 billion.
Furthermore, APE might extend its downside track if Bitcoin fails to welcome upside relief. The lower timeframe pessimistic setup also catalyzed the journey to downside targets.
ApeCoin 4Hr Timeframe
A descending triangle emerged on APE/USDT’s price chart. That came after some weeks of downside action. The triangle formation might witness a breakout up or down but often adheres to the preceding trend.
In that context, APE’s trend remained bearish. Therefore, a downward move remained more likely. Nevertheless, a session closing beyond $4.8 would erase the bearish tale. The RSI (Relative Strength Index) has failed to break beyond the 50-neutral on its 4hr chart.
Meanwhile, the A/D indicator stayed flat over the last few days. Thus, the momentum remained neutral and briefly bearish.
Market players seem to straddle the fence while awaiting massive action from ApeCoin. Volume bars around the chart’s bottom also plunged, reflecting sidelined participants.
ApeCoin 1Hr Timeframe
The descending triangle formation placed a $4.4 target for APE. Furthermore, the value area at $4.4 – $4.35 has supported APE in July. Thus, a dip below $4.67 might trigger plunges to this foothold.
Analysts plotted Fibonacci retracement lines based on the move between $5.6 and $4.59. Meanwhile, the 23.6% extension mark stood at $4.35 and ensured support confluence to the price near the $4.4 level.
The descending triangle formation plus ApeCoin’s downtrends in recent weeks indicate a 5% dip could appear soon.
Meanwhile, a 4hr session close below $4.67 can offer an opportunity to execute a short position, targeting $4.4. Traders can then set a stop loss at $4.68 – $4.7. a move beneath $4.59 would support the downside pressure.
What are your views about APE’s outlook? Has the project lost its name in the space? You can share your thoughts in the section below.
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