- Apecoin has rebounded from its support level of $3.20, indicating potential for bullish gains.
- The recent bearish trend caused Apecoin to lose over 40% of its value, but a reversal is expected.
- On-chart indicators, such as the RSI and OBV, suggest support for the bullish rally, while increased Apecoin holders and decreased supply on exchanges hint at an accumulation trend.
Apecoin, a cryptocurrency based on the Ethereum network, has recently experienced a rebound from its support level of $3.20. This upward movement has the potential to generate further bullish gains, particularly if Bitcoin manages to reclaim the $30,000 price mark. The South African market is closely observing these developments, as Apecoin’s performance has captured the attention of local investors.
The bearish trend that Apecoin had been experiencing since mid-February led to a significant loss of over 40% of its value. However, there are indications that a reversal in fortune may be on the horizon for Apecoin. According to data from CoinMarketCap, Apecoin has managed to record gains of 6.3% over the past seven days, showcasing its resilience amidst a volatile crypto market.
It’s important to note that the recent fluctuations in the broader crypto market, with Bitcoin ranging between the $26,000 and $27,000 price zones, could impact Apecoin’s potential for a strong bullish rally. The pivotal question remains whether the support level at $3.20 can hold and serve as a launching pad for a bullish reversal. On March 8, the dominance of sellers caused the price to plummet below the $4.56 support level. While bulls were able to mount a recovery from the subsequent $3.81 support level, breaking through the new resistance at $4.56 proved to be a challenge. Prices oscillated between these two levels for a month before succumbing to further bearish pressure.
The response from bullish investors at the critical $3.20 support level has seen Apecoin rebound to a trading price of $3.43 at the time of writing. On-chart indicators offer support for this positive momentum. The Relative Strength Indicator (RSI) has made a substantial climb out of the oversold zone, currently resting at the neutral 50 mark. Additionally, the On Balance Volume (OBV) has shown a slight uptick, indicating a potential increase in demand for Apecoin.
Past attempts by bulls to rally have been met with strong resistance from bears at the aforementioned resistance level. If bulls manage to successfully close above the $3.81 resistance, it would signal a strong potential for reversing the bearish momentum. However, failure to break through this barrier could usher in another wave of selling, with bears setting their sights on the November 2022 low of $2.81. Notably, data from Santiment reveals a consistent increase in the number of Apecoin holders, suggesting an ongoing accumulation trend that could contribute to a bullish reversal. Furthermore, the supply of Apecoin on exchanges has decreased during the same period, indicating a decrease in sell pressure.
In line with these observations, the exchange flow balance has been negative, which is evidence of long-term accumulation of Apecoin at its current discounted prices. This presents an attractive opportunity for bulls to potentially secure significant gains in the foreseeable future. The South African market, along with global investors, will be keeping a close eye on Apecoin’s performance as it continues to navigate the volatile cryptocurrency landscape.
